Reliance Comm to join Sensex club on Monday
The telecom arm of ADAG will replace Tata Power in the elite Sensex league on Monday.india Updated: Jun 11, 2006 12:03 IST
Reliance Communications Ltd, the telecom arm of Anil Dhirubhai Ambani Group, will replace Tata Power in the elite Sensex league on Monday, thus becoming the second ADAG entity after Reliance Energy in the exclusive club of top 30 blue-chip companies.
While Anil Ambani is all set to outscore his elder brother with two of his group companies enjoying the rank of 30 Sensex members, Mukesh would retain his big-brother clout as Reliance Industries alone is over three times larger than Reliance Communications and Reliance Energy combined in terms of market capitalisation.
According to the latest data available with the Bombay Stock Exchange, Reliance Communications has a market cap of Rs 27,018 crore, while that of REL stands at Rs 8,753 crore.
In contrast, RIL, which enjoys the highest weightage of 11.68 per cent on the 30-share barometer index, has a market cap of nearly Rs 1,28,500 lakh crore, the BSE data says.
Tata Power had a weightage of 1 per cent in the Sensex, while that of REL was 0.72 per cent.
Reliance Communications and Reliance Natural Resources Ltd (RNRL), both Anil Ambani group companies, will also enter the BSE-100 index with effect from Monday.
Reliance Communications was listed on the BSE at Rs 290 per share on March 6 and had surged past the Rs 300 mark soon after trading session commenced.
Reliance Communications' share price surged to an all-time high of Rs 347.70 on May 5, before a sharp downslide in the market dragged down its shares to Rs 194.70 at closing on June 8.
However, the stock staged a strong recovery on June 9, the last trading day before its entry into the Sensex, and moved up 13.46 per cent to Rs 220.90.
The BSE had announced on April 30 that Reliance Communications, then known as Reliance Communications Ventures Ltd (RCoVL), would replace Tata Power in the 30-share barometer index with effect from June 12.
On the first trading day after the announcement, the stock had touched a high of Rs 339, reflecting an increase of nearly six per cent over the previous closing.
The company recently decided to change its name to Reliance Communications Ltd, while its shareholders have also approved a scheme of amalgamation of Reliance Infocomm, Reliance Communications Infrastructure Ltd, Reliance Communications Solutions Pvt Ltd, Reliance Software Solutions Pvt Ltd, Reliance Communications Technologies Ltd, Ambani Enterprises Pvt Ltd, Reliance Business Management Pvt Ltd, Formax Commercial Pvt Ltd and Panther Consultants Pvt Ltd with the company.
The company's shareholders have also approved a proposal to raise up to $1 billion through issue of sponsored Global Depository Receipts (GDRs) or American Depository Receipts (ADRs).