Shares of Reliance Communications vaulted nearly 17 per cent in the closing minutes of trading today after the company announced that it has signed a definitive agreement for Rs 1,200 crore for sharing RCom’s inter-city fibre optic network infrastructure with Reliance Jio Infocomm Ltd.
In a release, RCom said that Reliance Jio Infocomm would use multiple fibre pairs across its 1.20 lakh km inter-city fibre optic network to offer a `robust and future-proof’ backbone for rolling out the latter’s state of the art 4G services.
In return, RCom would have reciprocal access to optical fibre infrastructure to be built by Reliance Jio in the future. The deal also provides for joint working arrangements to be put in place for upgrading of the optical fibre network for seamless delivery of next generation services.
The announcement acted as a huge boost to the RCom stock that rallied 16.91 per cent to Rs 66.70, a gain of Rs 9.65 on the NSE. The counter witnessed a trading volume of 2.87 crore shares in the exchange.
The Reliance stock too jumped Rs 16.70 to Rs 794.45 following the announcement.