| Reliance Communications, India's second-biggest telecom company, had its price target raised 3 per cent at HSBC Holdings on prospects for the company's tower and undersea-cable assets. |
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| The one-year share price target was lifted to Rs 644 from Rs 624, HSBC analysts Tucker Grinnan and Rajiv Sharma said in a note to clients today. |
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| Reliance Communications, which runs a nationwide network based on code division-multiple access (CDMA) technology, has spun-off its shelters, relay towers, generators and other passive infrastructure assets into Reliance Telecom Infrastructure. It aims to cut expansion costs by sharing those equipment with rivals such as Bharti Airtel and Hutchison Essar. |
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| "Reliance Communications will be the first operator to monetise tower assets via a strategic investment by private equity players/ tower operators,'' Grinnan and Sharma said. |
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| The analysts raised their valuation of Reliance Communications' wholly owned infrastructure unit to almost $5 billion, or Rs 102 a share, based on the 15,000 towers the company currently has in place. |
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