Reliance Industries (RIL), leading private sector enterprise with businesses in the energy and materials value chain, announced that its telecom arm-Reliance Jio Infocomm (Jio) has entered into a definitive agreement with Bharti Airtel for acquisition of right to use spectrum in the 800MHz band in Andhra Pradesh, Delhi and Mumbai circles through spectrum trading.

The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals. The aggregate value for the right to use this spectrum is Rs 14.97 billion, inclusive of present value of associated deferred payment liability of Rs 4.59 billion, subject to any transaction related adjustments.

With this trading of right to use spectrum, company will have 2X15MHz of spectrum in the 800MHz band in Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles.

With the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, company has further increased its network capacity.

Shares of the company gained Rs 55.15, or 2.78%, to trade at  Rs 2,038.80.  The total volume of shares traded  was  167,417 at the BSE (11.47 a.m., Wednesday).