Reliance Communication launches GSM services; buys back FCCBs at 52.5% discount

31 Dec 2008

Reliance Communication has announced the launch of GSM service over 11000 towns all over India.  In the process, inclusive of its CDMA network, its coverage will reach to 1 billion people in 24000 towns and 6 lakh villages in next few months. The CDMA major, in the process will provide its customers the unique proposition of option to choose between CDMA and GSM networks.  The project was completed 6 months ahead of schedule, and completed in 15 months time.  With this it has completed Rs 10000 crore of investments.

Meanwhile, the company has repurchased 250 zero coupon FCCBs each of US$ 100000 aggregating to Rs 121.22 crore (US$ 25 million) at a steep 52.5% discount to the face value.  These FCCBs have been extinguished on 29th December 2008.  The company has taken advantage of the RBI guideline which allows companies to buy back FCCBs at a discount, subject to specified conditions. The scrip surged by 7.16% and closed at Rs 228.10 on 30th December 2008.

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