Reliance Communications demerger; stock gains

Owing to a proposed demerger of its wireless division, the stock prices of Reliance Communications surged by 5.2 per cent intraday on Wednesday, March 15, 2017 on getting approval from SEBI, BSE and NSE.

Reliance Communications had sought approval from the Security and Exchange Board of India (SEBI), Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) of India for the demerger of the wireless division of the company into Aircel and Dishnet Wireless.

Subject to a series of approvals before implementation, the company also filed an application seeking approval from the National Company Law Tribunal (NCLT).

As a consequence of the demerger, Reliance Communications' shareholders will hold 50 per cent share in Aircel, while the rest will be owned by the Aircel shareholders.

On the stock market, Reliance Communications is trading at Rs 37.10, up by 2.34 per cent on BSE; while the stock is up by 2.34 per cent to Rs 37.20 on NSE.