Meanwhile, the government is readying a presentation to convince RBI to modify its 30 November notification on external commercial borrowing (ECBs) so as to ease the ability of infrastructure firms, especially telecom firms, to raise short-term foreign-currency loans, according to a media report.
The telecom sector is also lobbying the government to get the service tax on spectrum trading, announced in the Union budget, rolled back.
Reliance Communications Ltd (R-Com), India’s fourth largest mobile-phone services provider, has bought the local unit of Russia’s Sistema JSFC in a deal valued at Rs.4,500 crore in stock and payments to the government for spectrum allotted to Sistema—a transaction that may herald the much-anticipated consolidation in India’s telecom industry.
Shareholders of Sistema Shyam Teleservices approved the merger of the company with Reliance Communications, according to reports. SSTL reportedly said the meeting in Jaipur was convened by the high court to seek approval of the SSTL shareholders.
In another significant development, recent media report suggests that, Tillman Global is looking for new partners for a tower deal for R-Com as TPG Capital valued the telecom towers sharply lower than the Rs.21, 500 crore as initially projected.
TPG and Tillman Global Holdings LLC signed a non-binding pact in December to buy cellular towers from Reliance Communications Ltd. The deal could be the largest private-equity investment in India, according to data compiled by Bloomberg.
In case of Reliance Communications Ltd ( Rs.52), the change in Open Interest : -15,92,000 or % Change in Open Interest: -2.74 and the share price has fallen slightly.
Therefore, the inference is that the Bulls are preparig to come back in the arena.