RCom rings as LIC goes long

Reliance Communications advanced 4.96% to Rs 534 at 14:29 IST on BSE after Life Insurance Corporation raised its stake in the telecom services provider to over 5%.

The stock hit a high of Rs 541.70 and a low of Rs 514.80 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 389 on 2 April 2007.

The company’s current equity is Rs 1032.01 crore. Face value per share is Rs 5. The current price of Rs 534 discounts its Q3 December 2007 annualized EPS of Rs 8.46, by a PE multiple of 63.12.

Life Insurance Corporation (LIC) acquired 3 lakh shares representing 0.015% stake in Reliance Communications (RCom) through open market transaction on 13 March 2008. Promoters After this acquisition, LIC’s holding in RCom has gone up to 10.33 crore shares (5.009%) from the earlier 10.30 crore shares (4.994%). Promoters hold 66.16% stake in RCom.

Reliance Communications (RCom)’s net profit declined 43.4% to Rs 436.48 on 11.8% growth in net sales to Rs 3403.52 crore in Q3 December 2007 over Q4 December 2006.

RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.