Active Stocks
Tue Mar 19 2024 15:58:41
  1. Tata Consultancy Services share price
  2. 3,977.55 -4.03%
  1. Tata Steel share price
  2. 148.65 -0.64%
  1. Bharti Airtel share price
  2. 1,227.85 0.23%
  1. Power Grid Corporation Of India share price
  2. 258.95 -2.28%
  1. ITC share price
  2. 409.50 -1.89%
Business News/ Market / Stock-market-news/  RCom shares surge over 140% in last six trading sessions
BackBack

RCom shares surge over 140% in last six trading sessions

RCom shares surge over 140% in the last six trading sessions after the company announced its Rs39,000-crore debt resolution plan

In intraday trade, shares surged nearly 40.41% to hit a seven month high of 25.95 a share—a level last seen on 22 May. Photo: MintPremium
In intraday trade, shares surged nearly 40.41% to hit a seven month high of 25.95 a share—a level last seen on 22 May. Photo: Mint

Mumbai: Shares of Reliance Communications Ltd (RCom) surged over 140% in the past six trading sessions after the company announced a Rs39,000-crore debt resolution plan.

The stock gained 34.74% to close at Rs28.74. In intraday trading the shares surged 40.4% and hit a seven month high of Rs25.95 a share—a level last seen on 22 May.

Since 18 December, it has risen 143% from Rs11.83 a share. So far this year, it has declined 15.59%.

“RCom market cap has now almost doubled over the past one month on the stock surge and will enjoy an almost equal ratio with its outstanding debt of Rs6,000 crore post restructuring. Compared to other leading telecom peers, where the outstanding debt is one-third of their respective market-cap, RCom stock has exceeded that with its restructuring momentum. Hence, the rally may get arrested as the stock is no more under the active coverage of institutional investors and lacks support in terms of volatility," an analyst said on condition of anonymity.

The company on Tuesday said it has finalized a debt resolution plan that involves the sale of its assets and does not require lenders and bondholders to write off dues or convert it into equity. The company has also exited the strategic debt restructuring process (SDR).

According to the plan, RCom’s debt will be reduced by Rs39,000 crore from the Rs45,000 crore it owed lenders at the end of October.

RCom will reduce debt by Rs25,000 crore by selling assets and transferring its spectrum dues to third parties. The entire proceeds will be used for prepayment to lenders, said chairman Anil Ambani.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Dec 2017, 11:11 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App