R-Com stock falls after Reliance Jio signs pact with Bharti

Shares fall up to 5% as pact with Bharti suggests Reliance Jio is open to players other than R-Com as well

 

The Anil Ambani-controlled Reliance Communications has gained 76.8% in April as of Monday’s close, on hopes that the company will extend its pact with brother Mukesh Ambani-controlled Reliance Industries. Photo: Hemant Mishra/Mint

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Updated: Tue, Apr 23 2013. 02 21 PM IST

Mumbai: Shares in Reliance Communications Ltd (R-Com) fell as much as 5% after Reliance Industries Ltd’s telecom unit, Reliance Jio Infocomm Ltd, and Bharti Airtel Ltd entered into an agreement for international data connectivity.

“Tie-up with Bharti means Reliance is open to players other than Reliance Comm as well, which decreases the probability of further deals between Reliance Communications and Reliance Industries,” said G. Chokkalingam, executive director and chief investment officer, Centrum Wealth Management Ltd.

The Anil Ambani-controlled Reliance Communications has gained 76.8% in April as of Monday’s close, on hopes that the company will extend its pact with brother Mukesh Ambani-controlled Reliance Industries.

Earlier this month, the two companies signed a pact which would allow Reliance Jio to use the fibre optic network of Reliance Communications, signalling the first sign of thaw in relation between the estranged brothers. 

 

rohit singh 

pgdm 2