RCom surges on FCCB buyback move

Reliance Communications (RCom) surged by 10.2 per cent to close the day at Rs 228.25 on reports that the company is all set to take advantage of the new norms issued by RBI, for premature buyback of foreign currency convertible bonds (FCCB). As per the new norms, corporates can now buy back FCCBs out of rupee resources provided there is a minimum discount of 25 per cent on the book value. RCom will be buying back the $1 billion FCCB issued in February 2007, with a tenure of five years and at a conversion price of Rs 661 per share. The stock made an intraday high/low of Rs 230.95/Rs 209.