GTL Infra, Reliance Shares Witness Jump

MUMBAI, INDIA (GaeaTimes.com)- Reliance Communications witnessed a steady hike by a rate margin of 4.62% to Rs. 201.40. Reportedly, the jump is an aftermath of the deal that was scored between Reliance Communications and GTL Infra (GTL Infrastructure). Both GTL Infra and Reliance Communications have agreed on common grounds to merge their telecom towers expecting that it shall act as a boost to the revenue model for both the companies.

Besides the shares of Reliance Communications, GTL Infra shares also witnessed a tremendous growth by a margin of 8.60% to Rs 49.25. Market analysts called the business move to be a smart one owing to the fact that the deal was announced just before the trading hours rolled in. Following their deal with GTL Infra, Reliance Communications traded a total of 10.92 lakh shares on BSE (Bombay Stock Exchange). These shares were traded in accordance to the average daily volume of shares which amounts to Rs 23.29 lakhs. Reliance Communications which happens to be the largest telecom operator of India holds an equity capital of Rs.1032.01 crore. The face value for each share is Rs.5.

The official of both companies refused to discuss the financial terms of the Reliance- GTL Infra deal. However as speculated, the joint operations of Reliance Communications and GTL Infra shall incur an enterprise value of more than $11 billion. It was said that Manoj Tirodkar who happens to be the chairman of GTL Infra shall own 30-35 percent of the merged tower business while Anil Ambani from Reliance Communications shall hold 26 percent. Reliance Communications and it’s shareholders shall receive the cash in accordance to the total share value for GTL Infra.