Reliance Communications shares gain nearly 4 per cent

PTI Posted online: Friday, May 23, 2014 at 0000 hrs
Mumbai : Shares of Reliance Communications today rose by nearly 4 per cent following reports that Chinese firm Citic Telecom is in talks with the company to buy a significant stake in its sub-marine cable business Global Cloud Xchange.

Reliance Communications Ltd's stock opened the day on a positive note and further gained 3.74 per cent to Rs 143.90 on the BSE.

On the NSE, the scrip gained 3.82 per cent to Rs 143.95.

"RCom have had discussions with various players. Citic is one of them. Whenever and with whomsoever the deal is crystallised, proceeds will be used to lower debt," an industry source said yesterday.

Sources said Reliance Communications has set a target to raise over Rs 6,000 crore from sale of Global Cloud Xchange (GCX), formerly Reliance Globalcomm.

Reliance Communications' net debt was Rs 40,178 crore as on March 31, 2014, according to the financial results of the company.

When contacted, an Reliance Communications spokesperson had said: "It is the policy of the company not to comment on speculation."