Reliance Communications' shares spurt over 7% on realty hive-off plans

MUMBAI: Reliance Communications' shares today closed higher by 7 per cent, adding Rs 2,012 crore to firm's market value, after the private telecom company announced plans to hive off entire real estate assets into a separately listed company.

After surging 10.28 per cent to 52-week high of Rs 149.55 on the BSE in intra-day trade, the stock finally settled 7.19 per cent higher at Rs 145.35 in an otherwise weak stock market.

At the National Stock Exchange, the scrip closed 6.71 per cent up at Rs 144.80.

The market value of RCom soared by Rs 2,012 crore to Rs 30,000 crore.

"Reliance Communications was up by more than 7 per cent today post its decision to separate its real estate business into a separately listed unit," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.

Milan Bavishi, Research Head at Inventure Growth and Securities said, "Rcom saw continued investor and trading interest. The company is planning to separately list its real estate business. The move will help the company to raise funds to reduce debts."

In a bonanza for its shareholders, billionaire Anil Ambani-led RCom yesterday announced it is hiving off its entire real estate assets, estimated to be valued at around Rs 12,000 crore, into a separately listed company.

According to an Angel Broking report: "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."

Reliance Properties will be a separate listed company and will work with leading global partners to develop the real estate.

Besides unlocking the value of its real estate, RCom shareholders will get free shares in Reliance Properties in the ratio of 1:1.

In the broader market, the BSE benchmark Sensex ended the day at 19,324.77, down 171.05 points or 0.88 per cent.