RCom in talks with Aircel for merger?

Reliance Communications is, reportedly, in talks with Aircel for wireless business.

Reliance Communications (RCOM) is in talks with Aircel to consider the potential merger of the Indian wireless business of RCOM and Aircel.

The potential combination will exclude RCOM’s towers and optical fibre infrastructure,
for which RCOM is proceeding with an asset sale, as announced on December 4, 2015.

RCom informed BSE in a statement, "The discussions are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result."

Stock commentary:

Reliance Communications Ltd is currently trading at Rs. 84.25, up by Rs. 0.55 or 0.66% from its previous closing of Rs. 83.7 on the BSE.

The scrip opened at Rs. 83.7 and has touched a high and low of Rs. 84.55 and Rs. 83.2 respectively. So far 4804964(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 20832.76 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 86.85 on 19-Dec-2014 and a 52 week low of Rs. 45.65 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 84.5 and Rs. 79.45 respectively.

The promoters holding in the company stood at 59.7 % while Institutions and Non-Institutions held 29.58 % and 10.3 % respectively.

The stock is currently trading below its 50 DMA.