Rcovl M-cap Touches Rs 65,000 Cr, To Enter Sensex

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RCoVL M-cap touches Rs 65,000 cr, to enter Sensex

May 01, 2006 18:37 IST

Anil Ambani-controlled Reliance Communication Ventures Ltd, whose market cap has touched Rs 65,000 crore (Rs 650 billion), will replace Tata Power in the stock market benchmark Sensex -- the index of blue-chip companies - on June 12.

RCoVL will be the second telecom firm after Bharti Televenutres to find a place in the Sensex, which features 30 top companies in terms of market capitalisation.

Bharti, the Sunil Mittal company, commands the highest market cap of Rs 77,240 crore (Rs 772.4 billion) in the telecom space. FMCG major HLL would follow RCoVL with a market cap of Rs 63,385 crore (Rs 633.85 billion).

As of today, RCoVL would be among the top 10 companies in the index and incidentally would be the second Anil Dhirubhai Ambani group company after Reliance Energy to find a place in the key index. Reliance Energy's market cap stands at Rs 12,405 crore (Rs 124.05 billion).

The inclusion of RCoVL, which was formed after the demerger of the telecom businesses by Reliance Industries and was subsequently listed on bourses in March, has taken place after the Anil Ambani firm ousted Tata Power, whose market cap was way behind at Rs 10,946 crore (Rs 109.46 billion).

The company said it has the highest networth among the Indian private sector telecom services firms, with a whopping Rs 11,742 crore (Rs 117.42 billion). Its net debt stood at Rs 3,293 crore (Rs 32.93 billion), reflecting a net debt to equity ratio of 0.28:1 and providing a strong platform for leveraging on its balance sheet to raise resources for the future growth plans.

"At a conservative net debt equity ratio of 1:1, we have capacity to add over Rs 8,000 crore (Rs 80 billion) of leverage on our balance sheet", the company said in a statement.

Major inclusions in the BSE-100 are Bajaj Hindustan, Balrampur Chini Mills, besides state-run Bharat Earth Movers Ltd, Jet Airways and Reliance Natural Resources Ltd.

Some of the major companies to be dropped out from the BSE-100 are Biocon, Great Eastern Shipping, Jindal Steel and Shipping Corporation of India.

source:http://inhome.rediff.com/money/2006/may/01rco.htm