RCom shares jump 7 per cent on realty hive off plans
BT Online Bureau July 8, 2013Reliance Communications' shares jumped over 7 per cent on the bourses on Monday, after the company announced it is hiving off its real estate assets into a separate listed company.
In a bonanza for its shareholders, billionaire Anil Ambani-led company had announced it is hiving off its entire real estate assets, estimated to be of around Rs 12,000 crore, into a separate listed company. Reliance Properties will work with leading global partners to develop the real estate, according to the company's statement.
Besides unlocking the value of its real estate, RCom shareholders will free shares in Reliance Properties in the ratio 1:1.
Cheering the news, shares of Reliance Communications spurted over 9 per cent in morning trade to hit a 52-week high of Rs 148.20. The scrip, however, pared some of the gains to settle 7.19 per cent higher at Rs 145.35 on the Bombay Stock Exchange.
At the National Stock Exchange, the stock zoomed 7 per cent to Rs 145.20.
Over six crore shares of the company exchanged hands on both the bourses.
"The demerger is expected to enhance value for RCom's existing shareholders. This spin-off is another effort in anticipation for the group to raise funds through an imminent stake sale," Angel Broking said in a report.
The proposed separation of real estate into a separate unit is part of RCom's strategic plan to divest non-core assets, and focus on its core wireless and enterprise business.
With inputs from PTI