The R-Com-Reliance Jio deal: More questions than answers

Investors should also remember that while R-Com has had many such mini-rallies in its shares, the bottomline is that in the past two years the shares have more than halved. Photo: Mint

Shares of Reliance Communications Ltd (R-Com) have risen 8% in the past two trading sessions, on hopes that the company would gain from a tie-up with Reliance Jio Infocomm Ltd for sharing and trading radio spectrum. R-Com’s investors have, on numerous occasions, displayed a tendency to put the cart before the horse, only to be disappointed later.

As such, one can dismiss the recent rally as a case of another burst of irrational exuberance. After all, the government has not yet notified the fine print for spectrum trading.

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