RIL acquires 95% stake in Infotel Broadband-affect on share prices of RIL,HFCL,HFCL Infotel

RIL acquires 95% stake in Infotel Broadband-affect on share prices of RIL,HFCL,HFCL Infotel

Mukesh Ambani owned Reliance Industries has bought 95% stake in Infotel Broadband for Rs 4,800 crore. Infotel Broadband will now be a subsidary of Reliance Industries. Shares of RIL have been buzzing of late on rumours of foray in the telecom sector.

Confirming the news, Anant Nahata, Promoter Director of Infotel said, the company had been in talks with RIL since the start of the BWA auction. "We realised that we needed a strategic partner once auction prices went up," he added.

RIL is expected to pay BWA spectrum fee and infuse funds for the rollout. The company would evaluate tech options for the same.

Unlisted Infotel Broadband Services, which has over five lakh subscribers, is the only firm to win the broadband spectrum in all 22 zones in an auction that ended on Friday. The firm is paying Rs 12,848 crore (USD 2.7 billion) for the spectrum.

The Anil Dhirubhai Ambani Group has welcomed RIL's entry into broadband. The company said it is looking forward to offering services to RIL and other BWA players.

ADAG said it will continue to compete for users in the market place via choice of different technologies.

The share prices of both HFCL (promoted by Mahendra Nahata) and HFCL Infotel (promoted by son Anant Nahata) today rose by the maximum limit and closed at Rs 11.39 and Rs 10.14 a share respectively. RIL’s shares also surged over three per cent to close at Rs 1,046.25 a share.

Commenting on the initiative, RIL Chairman and Managing Director Mukesh Ambani said, “We see this as the next wave of value creation opportunity in the wireless broadband space. We believe this will pole-vault India’s economy into the digital world at an accelerated pace while creating next generation tools that will enhance productivity and create world-class consumer experiences.”