Shyam Telecom is in the limelight today and the reason not the company itself directly but its associate company, Sistema Shyam in which the Shyam group has a 24% stake.

The news, unconfirmed, is that Anil Ambani owned Reliance Communication (RCom) is  looking at the option of taking over Sistema Shyam Teleservices (SSTL) is an all-stock deal. And if and when the deal goes through, SSTL shareholders will get less than 10% stake in the merged entity.

SSTL is mainly owned by Russia's Sistema JSFC, which belongs to the Russian billionaire, Vladimir Yevtushenkov. It currently has a 57% stake. The other big shareholder is the Russian Govt which owns 17% stake.

This is being viewed as a logical buy for Rcom – it’s focus is currently all on $G LTE with 850 Mhz and Sistema in that sense is the perfect fit.

Shyam Telecom is a bright star on the bourses today, up currently 11.5% at Rs.32, its intra day high point. Volumes are up almost 5 times.