Shares of Anil Ambani-led Reliance Communications rocketed on Monday morning as the firm submitted corporate guarantee through Reliance Realty for deal with Mukesh Ambani’s Reliance Jio. On Friday, the Supreme Court cleared the sale of spectrum by Reliance Communications to billionaire Mukesh Ambani-controlled Reliance Jio. Reliance Communications share price zoomed by more than 17.8% to hit the day’s high at Rs 16.80 on NSE.
“As per the order dated November 30, 2018 of the Hon’ble Supreme Court of India, Reliance Realty Limited, a 100 percent subsidiary of RCOM has submitted the Corporate Guarantee of Rs 1,400 crore to the Department of Telecommunications (DoT),” Reliance Communications said in a statement on the exchanges. As per the said Order, DoT is to approve the Spectrum Trading within this week, the firm added in the statement.
Further, the firm said that spectrum trading transaction will now be completed and proceeds will clear the dues of Ericsson and minority investors of Reliance Infratel Limited (RITL). RCOM’s Asset Monetization proceeds as per plan, it added.
The Supreme Court had earlier directed Reliance Communications (RCom) to give a corporate guarantee of Rs 1,400 crore against Rs 2,900 crore demanded by the Department of Telecommunications (DoT) for clearing the deal with Reliance Jio.
Last year, RCom had signed a deal with Reliance Jio for sale of wireless spectrum, tower, fibre and media convergence nodes assets – the proceeds of which were to be used to clear Rs 45,000 crore debt. According to news agency PTI, so far, the company has completed the sale of optical fibre assets worth Rs 3,000 crore and sale of its media convergence nodes worth Rs 2,000 crore.
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