Reliance Industries surges as its telecom arm prepays Rs 30,791 crore towards deferred spectrum liabilities
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Reliance Industries is currently trading at Rs. 2525.95, up by 5.10 points or 0.20% from its previous closing of Rs. 2520.85 on the BSE.
The scrip opened at Rs. 2526.30 and has touched a high and low of Rs. 2541.65 and Rs. 2508.80 respectively. So far 63151 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2750.00 on 19-Oct-2021 and a 52 week low of Rs. 1830.00 on 29-Jan-2021.
Last one week high and low of the scrip stood at Rs. 2566.50 and Rs. 2508.80 respectively. The current market cap of the company is Rs. 1708413.49 crore.
The promoters holding in the company stood at 50.61%, while Institutions and Non-Institutions held 38.79% and 10.60% respectively.
Reliance Industries’ (RIL) telecom arm -- Reliance Jio Infocomm (RJIL) has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of year 2014, 2015, 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel. The company had acquired 585.3 MHz spectrum in the said auctions/trading.
RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in auction in the year 2016. Subsequent to Department of Telecom’s decision in the month of December 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, RJIL has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading.
These liabilities were due in annual installments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of 7 plus years. The company estimates that the above prepayments will result in interest cost savings of around Rs 1,200 crore annually, at the current interest rates.
Reliance Industries is India’s largest private sector company. The company’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.
