RCom rings on hopes of unlocking of value in subsidiary

Reliance Communication rose 4.95% to Rs 586.50 at 15:05 IST on BSE on reports its infrastructure arm Reliance Infratel has recieved Securities & exchange board of India approval for public issue.

The stock hit a high of Rs 592.45 and a low of Rs 561.25 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and the stock hit a 52-week low of Rs 466.65 on 17 August 2007.

The company’s current equity is Rs 1,032.01 crore. Face value per share is Rs 5.

The current price of Rs 586.50 discounts its Q4 March 2008 annualised EPS of Rs 9.91, by a PE multiple of 59.18.

Reliance Infratel owns mobile towers and other infrastructure. Reliance Infratel would offer 10% equity to the public valued at Rs 5,000-Rs6,000 crore reports added.

Reliance Communication (RCom)’s net profit declined 25.5% to Rs 522.43 crore on 10% rise in sales to Rs 3455.35 crore in Q4 March 2008 over A4 March 2007.

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