The telecom subsidiary of Mukesh Ambani's Reliance Industries, Reliance Jio, has signed a definitive agreement with Bharti Airtel for the acquisition of spectrum in the 800MHz band. According to the company, the total value of the right to use this spectrum is Rs 1,497 crore, including the present value of the associated deferred payment liability of Rs 459 crore.
Reliance Jio will pay Sunil Mittal's Airtel Rs 1,037.6 crore for the proposed transfer under the terms of this agreement. Jio, a subsidiary of Reliance Industries, will also assume future spectrum liabilities worth Rs 459 crore.
With this transaction, Jio will have 2X15MHz of spectrum in the 800MHz band in the Mumbai circle and 2X10MHz in the 800MHz band in Andhra Pradesh and Delhi, allowing it to further consolidate its spectrum footprint in these circles, according to RIL.
Reliance Jio, Mukesh Ambani's telecom subsidiary, has signed a definitive agreement with Bharti Airtel for the acquisition of spectrum in the 800MHz band. The transaction is contingent on regulatory and statutory approvals.
Last month, auctions were held in which Mukesh Ambani's Reliance Jio spent the most, paying over Rs 57,100 crore for 488.35 MHz spectrum in bands such as 800 MHz, 1800 MHz, and 2300 MHz.
At around 10.47 am, RIL is trading at Rs 2026 per piece higher by Rs41.80 or 2.11% on NSE. The stock has jumped to an intraday high of Rs2030per piece during the trade.
Bharti Airtel was up 2.24 percent on the NSE, trading at Rs544 per share. After hitting an intraday high of Rs544.500 per piece in early trading hours.