RCom gains on tying up funds for FCCB redemption

Reliance Communications rose 3.12% at Rs 89.15 at 15:04 IST on BSE after the company said it tied up refinancing for outstanding foreign currency convertible bonds worth Rs 6125 crore.

The announcement was made during trading hours today, 17 January 2012.

Meanwhile, the BSE Sensex was up 274.07 points, or 1.69%, to 16,463.43.

On BSE, 32.28 lakh shares were traded in the counter as against an average daily volume of 19.75 lakh shares in the past one quarter.



The stock hit a high of Rs 91.30 and a low of Rs 86.65 so far during the day. The stock had hit a 52-week low of Rs 61 on 20 December 2011. The stock had hit a 52-week high of Rs 136.95 on 25 January 2011.

The stock had outperformed the market over the past one month until 16 January 2012, gaining 29.22% compared with the Sensex's 4.51% rise. The scrip had also outperformed the market in past one quarter, rising 10.83% as against 5.23% fall in the Sensex.

India's second largest listed mobile operator by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.

Reliance Communications (RCom) said the refinancing is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), Export Import Bank of China (EXIM), and other banks.

The company said it would benefit from extended loan maturity of seven years and attractive interest cost of about 5%.

The loan proceeds would be used for refinancing the entire redemption amount of foreign currency convertible bonds (FCCB), which are due for redemption on 1 March 2012.

Reliance Communications' consolidated net profit jumped 60.5% to Rs 252 crore on 2% growth in total turnover to Rs 5040 crore in Q2 September 2011 over Q1 June 2011.

Reliance Communications is an integrated telecommunication company with over 150 million customers. Its business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications.