Debt settlement news propels RCom, other ADAG stocks higher

image

NEW DELHI: Reliance Communications shot up over 40 per cent on Thursday, buoyed by news reports that the company and Ericsson AB may settle the outstanding debt directly without going through the insolvency process.

The company is also reported to be considering knocking at the door of the National Company Law Appellate Tribunal (NCLAT) against the NCLT order.

The scrip had tanked over 15 per cent on Wednesday after NCLT admitted an insolvency petition filed by Ericsson against the company and two of its subsidiaries.

The debt settlement news apparently has given other stocks of the Anil Dhirubhai Ambani Group (ADAG) a new lease of life. Reliance Naval and Engineering (up 24.80 per cent), Reliance Power (9.45 per cent), Reliance Capital (5.15 per cent) and Reliance Infrastructure (4.58 per cent) were on a roll.

Meanwhile, Reliance Power has divested its entire holding in Jharkhand Integrated Power, set up to develop Tilaiya UMPP, to Jharkhand Urja Vikas Nigam for Rs 112.64 crore, PTI reported.

In contrast, equity benchmarks slipped because of selling in bluechip counters amid mixed Asian signals. The BSE Sensex was 92 points down at 35,296 while the NSE Nifty slid 32 points to 10,709 around 1:25 pm.

On the Sensex index, 13 stocks moved up while 18 hit lows.

Tata Motors, with a gain of 2 per cent, was leading the pack of Sensex gainers. On the contrary, Tata Steel, losing over 2 per cent, was the worst laggard.

Source: Economic Times