Shares in Reliance Communications surged on Monday after the Anil Ambani promoted firm said it will spin off its real estate business into a separately listed unit. The move is aimed to focus on RCom's core telecom business, the company said in a statement.
Reliance Communications is the most leveraged among listed Indian telecommunications carriers and has so far been unsuccessful in its efforts to sell stakes or list companies to cut its debt. Controlled by billionaire Anil Ambani, Reliance Communications is India's third largest mobile phone carrier by customers.
RCom shares traded 6 per cent higher at Rs 143.45 as of 09.35 a.m., after earlier hitting a high of 148 on the Bombay Stock Exchange. The stock outperformed the broader Sensex and Nifty, which traded with deep cuts after the Indian rupee hit a record low in early trades.
Reliance Properties will work with global partners to develop real estate, which includes land in Mumbai and New Delhi, Reliance Communications said.
The value of the real estate when developed was estimated to be more than Rs 12,000 crore, the company said.
Shareholders of Reliance Communications will receive free shares in Reliance Properties on a pro-rata basis, the mobile carrier said. A panel constituted by its board will work out further details of the demerger.
In December, Ambani's Reliance Group and China's Dalian Wanda Group announced a tie-up to develop real estate and movie theatre projects.
(With inputs from Reuters)
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