StanChart downgrades RComm on valuations
Standard Chartered downgraded Reliance Communications rating to 'underperform' from 'in-line'. It feels that the risks from the tower sharing deal exist from the pace of the ramp-up.
Standard Chartered downgrades Reliance Communications rating to "underperform" from "in-line", saying current valuations "fully reflect the upside from the optic fiber and tower deals."
The Ambani brothers signed a long-expected pact on Friday for their rival telecoms firms to share mobile masts in a contract valued at more than USD 2 billion over several years -- the biggest deal between them since reconciliation.
Also read: RIL, RComm strike Rs 12,000cr tower pact
Standard Chartered says the Reliance Jio tower deal may add 17-22 rupees per share to Reliance Communications' valuations, although risks exist from the pace of the ramp-up.
Reliance Communications' shares have gained 50 percent in 2013 so far compared to India's benchmark index which was flat in the same period.