India Markets open in 6 hrs 46 mins

Reliance Communications Allots 10% Shares To Sistema Shyam Teleservices

Reliance Communications Ltd. has allotted 10 percent shares to Sistema Shyam Teleservices Ltd. which merged with the company early this month.

RCom has allocated over 27.65 crore shares, equivalent to 10 percent equity capital of the company to SSTL on Nov. 9, as per a regulatory filing.

The value of shares allocated to Russian conglomerate Sistema-owned SSTL is estimated to be around Rs 415 crore as per the trading price of RCom stock at the Bombay Stock Exchange on Nov. 9.

The completion of SSTL business merger provided a breather to RCom, which will shut down its loss-making wireless telephony business by Dec. 30 and concentrate only on 4G internet services.

As part of the deal, RCom has acquired the entire telecom business of SSTL including its licences which bring along 30 MHz of spectrum in 800 MHz and 850 MHz bands, considered premium frequencies for providing 4G services.

Also Read: Reliance Communications Bonds Fall to Record on Missed Payment

. Read more on Business by BloombergQuint.