Shares of Reliance Communications today rose nearly 3 per cent after the company said it’s in talks to buy Russia-based Sistema’s Indian arm to consolidate its position as the nation’s fourth-largest telecom player.

The stock moved up 2.97 per cent to Rs 60.60 on BSE.

Reliance Communications (RCOM) and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices and Reliance Communications through a stock swap.

The discussions are indicative and non-binding in nature, and remain subject to due diligence, definitive documentation and approvals, as may be necessary. There is no certainty that any transaction will result, said RCom in a statement.

The Telecom Ministry has sought legal opinion on a Comptroller and Auditor General (CAG) report that stated undue benefits were extended to companies including Reliance Jio, Bharti Airtel, RCom and Tata Teleservices on a number of issues.

According to a source: "The Ministry has sought legal opinion on the matter so as to undertake further course of action."

MUMBAI: In what could mark the start of consolidation in the world's second-largest wireless market, where tariffs have fallen to among the lowest globally as 12 carriers compete for customers, the Anil Ambani-led Reliance Communications(RCOM) is said to be in talks with AFK Sistema to acquire its Indian wireless business.

Russian billionaire Vladimir Yevtushenkov, owner of conglomerate Sistema group, is learnt to have met Reliance Group chairman Anil Ambani recently to discuss combining their wireless operations in the country. Yevtushenkov on Friday confirmed a media report that he met the Indian tycoon for a possible JV but denied any plans to sell off the Indian unit.

A report by the Comptroller and Auditor General (CAG) has said the Mukesh Ambani-promoted Reliance Jio Infocomm got undue advantage of Rs 3,367.29 crore after the department of telecommunications (DoT) allowed the company to offer voice services by using broadband wireless access spectrum (BWA).

Reliance Industries in 2010 acquired Infotel Broadband, which had won pan-Indian BWA spectrum in auctions to be used for 4G services.

Mumbai: Reliance Jio Infocomm Ltd (R-Jio) has outspent most telecom operators in India and may soon surpass Bharti Airtel Ltd even before the telecom unit of Reliance Industries Ltd (RIL) has started commercial operations, illustrating the extent billionaire Mukesh Ambani is willing to go to tap demand for wireless data in the world’s second biggest smartphone market.

R-Jio, which will start operations later this year, has spent $14 billion so far, more than India’s third largest mobile phone operator Idea Cellular Ltd.

Mobile phone users will pay less for usage while roaming from tomorrow as leading operators, including Airtel, Vodafone, Idea Cellular and Reliance Communications, slashed their roaming rates by up to 75 per cent weeks after regulator Trai cut ceiling tariffs.

While in roaming, call rates will be cheaper by up to 40 per cent and SMS by up to 75 per cent.

Country's fourth largest telcom operator Reliance Communications (RCom) has mopped up $300 million from global investors by selling 5.5-year dollar debt at 6.5%.

"The company has launched, closed and priced the issue of Notes on April 27, 2015. The Notes have a tenor of 5-1/2 years due in 2020 and carry a coupon of 6.5 per cent per annum, payable semi annually. The Notes are expected to be settled by May 6, 2015. The Notes will be listed on the Singapore Stock Exchange," RCom said in a statement today.

Mumbai: Reliance Communications Ltd (R-Com) is seeking to raise at least $300 million (around Rs.1,900 crore) by selling bonds to investors in Europe and Asia, said two people familiar with the deal who did not want to be named.

This is the first time that R-Com is tapping the overseas market as it seeks funds for capital expenditure and payments related to the recently concluded spectrum auctions, one of the persons cited above said.

Credit rating agency Moody’s has said Reliance Communications (RCom), which has 66 per cent of its total debt in US dollars, does not have sufficient cushion against the risks from the possibility of the rupee depreciating up to 20 per cent from March 31 this year. Over the past 12 months, the rupee has depreciated 13 per cent against the dollar.

The global rating agency has found that six out of 49 non-financial high-yield companies it rates in South and Southeast Asia with dollar-denominated debt don’t have such ‘mitigants’. These 49 firms have dollar debt totalling $56.5 billion. Out of this, RCom has $4.6 billion outstanding dollar debt.

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