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Apr 03, 2013, 11.42 AM IST | Source: Moneycontrol.com

Use exuberance to sell Reliance Communications: Kotak Sec

Brokerage house Kotak Securities’s institutional arm has retained its sell rating on Reliance Communications, saying the Rs 1200 crore-deal with Reliance Jio does not materially change things for the Anil Ambani firm.

Moneycontrol Bureau

Brokerage house Kotak Securities's institutional arm has retained its sell rating on Reliance Communications , saying the Rs 1200 crore-deal with Reliance Jio does not materially change things for the Anil Ambani firm.

"The transaction does not mean much for RCOM; the one-time receipt (Rs 1200 crore) is immaterial given the large net debt on RCOM’s books (Rs 37,200 crore at end-Dec 2012). It does reduce net debt a bit (around 3%), but does it provide material ammunition for RCOM to try and improve its market positioning in the Indian wireless market? No, in our view,” said the Kotak Securities note to clients this morning.

Reliance Communications shares were trading at Rs 66.15, up 5 percent after touching a high of Rs 69 earlier in the day.

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