Reliance Communications (RCom) shares advanced over 3 per cent in the early trade on Thursday after the company and Maxis Communications Berhad, promoters of Aircel, on Wednesday (post market hours) announced the merger of their wireless operations to create a combined entity with assets worth Rs 65,000 crore. At 9.48 am, shares of Reliance Communications were trading 1.67 per cent up at Rs 51.90. The scrip opened the day at Rs 52.25 and has touched a high and low of Rs 53 and Rs 51.25, respectively, in trade so far. Later, the share price of the company wiped off its gains to close 2.54 per cent down at Rs 49.80.
In a BSE filing, Reliance Communications said, “The RCom-Aircel combination will create a strong operator clearly ranked amongst India’s top 4 telcos by customer base and revenues, also ranking amongst the top 3 operators by revenues in 12 important circles. Merged company will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-35.”
The company also announced its financial results for the quarter ended June 30, 2016 on Wednesday. For April-June period, the company posted a consolidated net profit of Rs 54 crore, up 5.88 per cent, against Rs 51 crore in the corresponding quarter a year ago. However, consolidated net sales of the company of the company slipped 3.85 per cent year-on-year to Rs 5247 crore for the quarter under review.
On a standalone basis, the company reported a net loss of Rs 559 crore for the quarter ended June 30, 2016 against net loss of Rs 231 crore in the same period last year.