Shares of Reliance Communications surged over 4 per cent in early trade on Tuesday as its arm Reliance Realty issued a Rs 1,400-crore corporate guarantee to the telecom department (DoT), in line with a Supreme Court order, paving the way for an early closure of the Anil Ambani-led telecom company's pending spectrum sale to Reliance Jio Infocomm.Last Friday, the countrys apex court had allowed R-Comm to sell its airwaves to Jio, dismissing DoTs objections.
This provided a huge relief to the beleaguered telco, which will now be able to conclude the transaction and reduce debt by repaying creditors.
The scrip was trading 4.21 per cent up at Rs 17.32 at around 09.25 am, while the benchmark BSE Sensex was down 0.27 per cent at 36,142.18.
Reliance Communications shares had surged nearly 18 per cent intraday on Monday after its subsidiary submitted corporate guarantee to Department of Telecommunications.Meanwhile, the shares of Reliance Communications opened at Rs 17 on BSE against its previous closing of Rs 16.62.