Shares of Anil Ambani group’s telecom firm Reliance Communications (RCom) collapsed as much as 38% from the day’s high in the afternoon deals on Friday but started recovering in late-afternoon trades on company’s clarification on settlement talks with Ericsson. “We confirm that RCom and Ericsson are at an advanced stage of discussions to expeditiously resolve commercial issues. This will enable Reliance Communications to exit the NCLT process. RCom is confident to expeditiously proceed with its monetisation plan with Reliance Jio and overall resolution plan with the lenders, keeping in mind the interests of all stakeholders,” RCom said in an exchange filing.
The stock of RCom plunged 38.26% to a day’s bottom of Rs 13.15 from the day’s high of Rs 21.3 and 19.82% from the previous closing price of Rs 16.4 on NSE on Friday. Unusually high trading volumes were seen in the shares of RCom for the second straight day on Friday, up until 2:47 pm, more than 81.1 crore equity shares have already traded on the counters of both NSE and BSE with about 74 crore equity shares on NSE alone. RCom shares on Friday opened up 9.76% at Rs 18 and quickly extended gains to hit a day’s high of Rs 21.3, up by 29.88% on NSE on Friday.
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Earlier yesterday, shares of Anil Ambani-led RCom spiked more than 75% in the intraday dealings and finished 65% higher registering a huge volume. As per the data available with stock exchanges, more than 55 crore equity shares of RCom exchanged hands on NSE alone, which is more than the 30-day moving average volume of 9.68 crore. Shares of Reliance Communications (RCom) have been broadly falling since 6 April 2018 as the proposed multi-billion rupee asset sale to Mukesh Ambani-controlled Reliance Jio Infocomm was getting delayed.
India’s bankruptcy court NCLT on Wednesday admitted an insolvency plea by the Swedish telecom gear-maker Ericsson against RCom, potentially delaying the company’s plans to sell assets to Mukesh Ambani’s Reliance Jio Infocomm Ltd in order to cut its debt. Ericsson, which signed a 7-year deal in 2014 with co, is seeking Rs 1,155 crore from RCom and 2 of its units.
Source: Financial Express