The stock market on Friday greeted with enthusiasm the reports of Reliance Communications planning acquisition of rival Hutch-Essar, as the Anil Ambani group firm gained a massive Rs 4,000 crore (Rs 40 billion) in market value.
Market players were seen betting on reports of RCL's planned
bid for Hutch-Essar. The acquisition, if successful, will propel RCL as the country's biggest telecom player and third biggest corporate entity in terms of market value.
Although Hutch-Essar is not a listed company, its value is estimated between $13-14 billion (Rs 63,000 crore), according to investment banking sources.
A combination with Reliance Communication could take the combined market value to more than Rs 1,60,000 crore (over $35 billion).
At present, ONGC and Reliance are the top two firms with market cap of more than Rs 1,74,000 crore (Rs 1740 billion)
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