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Showing posts with the label Reliance Communication

Sensex slumps over 500 points as China rattles global stocks

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Benchmark shares  indices crashed over 2%, amid a sell-off in Asia and Europe, after suspension of trading in Chinese shares post the sharp plunge in Shanghai Composite. Further, geopolitical tensions in the Middle-East also dampened sentiment. The S&P BSE Sensex tumbled 534 points to close at 25,627 and the Nifty50 plunged 171 points to end at 7,793. In the broader markets, BSE Mid-cap and Small-cap indices cracked 1% each. Market breadth finished remain weak with 1,284 gainers and 1,598 losers on the BSE. “China's PMI continues to underline its downward growth trajectory with equity markets reflecting a sub-7% GDP figure for calendar 2016 and beyond. India’s manufacturing PMI has hitherto stayed reasonably resilient despite weak aggregate demand. However,a sub-50 print at the beginning of the year marks extended expectations on a recovery. One would hope that prudent fiscal expansion and select sector-wise recovery would bring back the ...

RCom, Aircel to pare debt to Rs 20,000 cr ahead of merger

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The three-way merger between Reliance Communications (RCom), Aircel and MTS (brand of Sistema Shyam) is on course to create a formidable company, with best-in-class spectrum and reasonably strong financials. Even as the entities have written to the  Competition Commission of India (CCI) for approval, both RCom and Aircel are working on lowering their debt, which they have agreed to cap in the new entity at Rs 20,000 crore.Sistema Shyam has agreed to settle its liabilities ahead of the merger with RCom. After the sale of its tower and fibre assets, RCom’s debt is expected to come down to Rs 10,000 crore, which will be transferred to the merged entity. Aircel, too, is planning to bring down its debt to Rs 10,000 crore from the present Rs 26,000 crore. Sistema Shyam will also pay off its Rs 4,153 crore debt. Experts said the company would have found it difficult to incur capital expenditure if the debt of the combined entity remained elevated. Emailed questionnaires to ...