RCom scrip spurts 17 per cent after deal with RIL arm

Shares of Reliance Communications soared nearly 17 per cent on Tuesday, adding Rs 11,785 crore to its market value, after the company inked a Rs 1,200 crore-deal with Reliance Industries' arm Reliance Jio Infocomm.

Billionaire Ambani brothers struck a Rs 1,200 crore deal wherein Mukesh will use his younger sibling's optic fibre network for launch of his telecom venture.

"Reliance Jio Infocomm Ltd and Reliance Communications Ltd today announced the signing of a definitive agreement for approximately Rs 1,200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fibre optic network infrastructure," RCom said in a statement.

Following the announcement shares of the Anil Ambani-promoted company surged 17.16 per cent to Rs 66.90 on the Bombay Stock Exchange (BSE) in intra-day. It finally ended at Rs 63.30, up 10.86 per cent from its previous close.

At the National Stock Exchange (NSE), the stock shot-up by 16.91 per cent to Rs 66.70.

Buying was also seen in other group stocks, with Reliance Power gaining 3.96 per cent, Reliance Infrastructure (3.79 per cent), Reliance Capital (4.30 per cent) and Reliance MediaWorks (4.98 per cent).

On the other hand, shares of RIL rose by 2.03 per cent to Rs 793.95.

Meanwhile, in the broader market, the BSE Sensex regained the 19K-level after two weeks, closing at 19,040.95, up 176.20 points.

With inputs from PTI