Why RCom shares did not react to Rs 12,000 cr deal with Reliance Jio

07 Jun 2013, 04:48 PM IST

Lack of surprise: Markets have a tendency to buy on rumour and sell on news. Traders expected a bigger deal between RIL and RCom ever since the two companies signed a Rs 1,200 crore fibre optic network sharing deal in April this year. A tower-sharing deal between RIL and RCom appears more likely than before, Bank of America Merrill Lynch had said in a note post the April deal. (Read: RIL- RCom deal: How it impacts the telecom space)
RCom shares have run-up sharply: Since April 2, when the fibre optic network sharing deal was announced, RCom shares have gained 87 per cent from Rs 63.30 on April 2 to Rs 118 on June 6. The BSE Sensex has gained 2.5 per cent over the same period. (Track stock)
RCom unlikely to get the money in one go: RCom will lease up to 45,000 towers and will get more than Rs 12,000 crore over the lifetime of the contract, Reuters said. Deven Choksey, managing director of KR Choksey said investors would have been happier if the entire sum of Rs 12,000 crore would have come in one go.