NSE Symbol: RCOM | BSE Code: 532712
Reliance Communications Share Price Performance
In January 2018, the RCOM share price started being traded at Rs.35.35. However, the scrip started to fall and reached Rs.28.60 in a month. As the quarter closed in March 2018, the RCOM stock price was at Rs.23.80. April and May portrayed a consistent downward sloping curve as the share price drastically fell to Rs.10.50 in mid-May. The scrip rose again to Rs.18.65 in the end of the month but started falling again in June. The RCOM shares were traded at Rs.20.55 in mid-August. However, the stocks declined again and reached Rs.12.35 when the quarter closed on September 30, 2018.
Reliance Communications Company Information and Brief History
Reliance Communications Ltd. is the flagship company of India's third largest business house - Reliance Anil Dhirubhai Ambani Group. With over 100 million subscribers, RCOM is the largest private sector information and communications company. RCOM has established a pan-India digital network with brilliantly high capacity, integrated wireless and wireline network with voice, video and data facilities. RCOM offers services traversing the entire infocomm value chain. Reliance Communications is often called RCOM; it is a telecommunications operator in India. It is also known for its international subsidiary 'Global Cloud Xchange'. Reliance Communications is one of the largest IDC (Interactive Data Corporation) service providers with its data centers in four cities and a new data center under construction.
Reliance Communications was founded in 2001 in India. It was launched nationwide with the introduction of its CDMA2000 service. The company eventually introduced its GSM service in 2008, called 'Reliance SMART'. RCOM started using MIMO technology in 2011 in order to enhance the quality of its 3G service. In the spectrum auction of 2010, Reliance Communications obtained 3G spectrum in three Indian cities for â‚¹58,642.9 million. Following this, the company reduced the price of its 3G service by 61% in May 2012. In the next year, Reliance joined Lenovo to introduce their co-branded Android smartphones. The company scrapped its CDMA operations in 2016 and migrated its CDMA subscribers to the GSM and LTE networks. As of today, RCOM owns and operates the world's largest next generation IP-enabled connectivity infrastructure, which comprises over 2 lakh kilometers of fiber optic cable systems in India, the US, Europe, Middle East as well as the Asia Pacific region.
Wealth and Recent Performance
This mid-cap company which has a market cap of Rs.3288.22 crores operates in the telecommunications sector and was incorporated in the year 2004. These telecommunication services had contributed Rs 8823 Crore to sales value in March 2017, which was 100.00 % of total sales. For the second quarter ending in June 2018, RCOM has reported a consolidated sales of Rs 1006 crore, with a rise of 6.01 % from the last quarter sales of Rs 949 Crore and a fall of 71.21 % from last year's sales of Rs.3494 in the same quarter. Reliance Communications has reported a net profit of Rs.-344 crore after tax in the latest quarter. As reported in June 2018, Reliance Communication has a total of 2,765,533,050 outstanding shares.
In July 2004, Reliance Communications Ltd was incorporated as a private limited company and named as Reliance Infrastructure Developers Pvt Ltd.
A year later, in July 2005, the company got converted into a public limited company. This was when its name was changed to Reliance Infrastructure Developers Ltd.
In August 2005, the company further changed its name to Reliance Communication Ventures Ltd. This was when Reliance Industries Ltd. acquired their equity shares and thus Reliance Communications became an entirely owned subsidiary of Reliance Industries Ltd.
In March 2006, Reliance Communication's equity shares were listed on the Bombay Stock Exchange Ltd as RCOM and in the National Stock Exchange of India Ltd as 532712. reliance Communication share price was around Rs.300 during this time.
Soon after, in June of the same year, the company's name was further modified to Reliance Communications Ltd.
In September 2006, a scheme of amalgamation and arrangement combined Reliance Infocomm Ltd, Reliance Business Management Pvt Ltd, Ambani Enterprises Pvt Ltd, Formax Commercial Pvt Ltd, Reliance Software Solutions Pvt Ltd, Reliance Communications Technologies Ltd, Reliance Communications Solutions Pvt Ltd and Panther Consultants Pvt Ltd with the company. As a result, all the subsidiaries of the abovementioned companies became the subsidiaries of the company. Subsequently, the Network division of RCOM Ltd was de-merged to the company.
During 2006-07, Reliance Digital World Ltd, Paradox Studios Ltd and NIS Sparta Ltd stopped being subsidiaries of the company. However, Gateway Net Trading Pte Ltd, Reliance Communications (Hong Kong) Ltd, Reliance Communications (Singapore) Pte Ltd, Reliance Communications (New Zealand) Pte Ltd, Synergy Entrepreneur Solutions Pvt Ltd, Reliance Communication (Australia) Pty Ltd. RCOM Malaysia SDN BHD and Reliance Next Generation Technology Pvt Ltd all became subsidiaries of the company.
During 2007-08, Reliance Big TV Ltd, Reliance Tech Services Pvt Ltd, Yipes Holdings Inc, Yipes Systems Inc, YTV Inc, Anupam Globalsoft (U) Ltd, Reliance Globalcom Services Inc, Reliance Telecom Infrastructure (Cyprus) Holdings Ltd. and Lagerwood Investments Ltd. became the subsidiaries of the company.
In 2007, the group structure involving various of its subsidiaries was reorganized. During this year, the company acquired a Uganda-based company called Anupam Globalsoft (U) Ltd, which enabled the company to offer Mobile, Internet, Fixed Line, National and International Long-distance services in Uganda.
During 2008-09, the company launched its GSM services in 14 service areas and began commercial operations. Reliance Big TV Ltd, a completely owned subsidiary of the company also launched a fully Digital Home Entertainment DTH (Direct To Home) Service on a highly advanced MPEG 4 DTH Platform.
During this year, Reliance communication acquired several subsidiaries like Reliance Vanco Group Ltd, Reliance WiMax World Ltd, Gateway Net Trading Pte Ltd., etc. On the other hand, RCOM's relationship with FLAG Telecom completely ceased. Reliance Netconnect Broadband Plus, the fastest wireless internet service of the company was rolled out during this time. It had a downlink speed of around 3.1 Mbps and supported video streaming, surveillance and superior Internet browsing. RCOM also made a tie-up with Flytxt to implement a special mobile marketing software platform called Neon on its network. They also made another tie-up with SAS to get better business intelligence and analytics and with AMDOCS for Customer Self Service systems.
In the financial year 2009-10, RCOM acquired many more subsidiaries. During this year, the company bagged the prestigious Global World Communication Awards 09, which was held in London. RCOM also won this award in the "Best Device" Category, where they had participated with a brand new network device that was developed with CISCO. RCOM was the only Indian company to win at WCA 09.
During the year 2010-11, RCOM and its subsidiary, Reliance Telecom Ltd was awarded 3G spectrum at a price of Rs.85850 million in 13 out of 22 telecom circles, making RCOM one of the only 3 operators who won this award in 13 circles, including three metro cities namely Mumbai, Delhi and Kolkata. In December 2010, RCOM became the first operator offering 3G services to customers in these three metro circles.
In March 2011, the company signed a facility agreement with China Development Bank (CDB). This included Rs 6000 cr for refinancing the 3G spectrum fee payment and Rs 2700 cr for importing equipment from Chinese Vendors.
In early 2012, RCOM acquired AnComm, the creator of Talk About It. This anonymous communication service allowed students to speak up through text messages or email dialogue with trusted staff members of the school. In 2012, the company also launched a partnership with WhatsApp for its prepaid GSM users and offered lucrative plans like the WhatsApp Plan and My College Plan for students.
In 2013, RCOM signed a billion dollar contract with Alcatel-Lucent. It was a way of improving network performance and customer experience. RCOM aimed to offer next-generation telecom solutions in multiple devices and platforms.
In 2014, Reliance launched its Hi-Speed unlimited data plans through Reliance Jio and it expanded its 3G services to 18 circles.
In 2015, RCOM launched its next-generation content and cloud delivery network in 5 Indian cities, inching toward making 'Smart Cities' a reality.