RCom share price rallied nearly 15% on TV reports saying that the Supreme Court cleared the way for Anil Ambani's telecom firm to proceed with asset sale to Mukesh Ambani's Reliance Jio Infocomm.
RCom share price rallied nearly 15% on TV reports saying that the Supreme Court cleared the way for Anil Ambani’s telecom firm to proceed with asset sale to Mukesh Ambani’s Reliance Jio Infocomm. Further, the Supreme Court has also directed Anil Ambani’s Reliance Communications to pay settlement amount before 1 October 2018. According to CNBC TV18, the Supreme Court has directed Reliance Communications to adhere to the timeline for making settlement payment and for the undertaking by Anil Ambani for payment of the settlement amount.
Shares of RCom surged as much as 14.96% to a day’s high of Rs 17.06 in the early session on BSE on Friday. On TV reports of Supreme Court’s direction to adhere with settlement timeline to Anil Ambani-led Reliance Communications, RCom share price pared gains but was still trading 10% higher. Following the buzz around the news, RCom shares topped the trading volumes on National Stock Exchange. As at 11:30 am, more than 11.49 crore equity shares got exchanged on NSE only.
Also Read | Anil Ambani’s RCom is one of India’s most traded stocks in 2018! Average trading volume: 11 crore shares a day
Earlier in May, the NCLAT (National Company Law Appellate Tribunal) brought an end to the long-running settlement case between Reliance Communications and Swedish telecom equipment maker Ericsson. According to a PTI report, NCLAT has directed RCom to pay Rs 550 crore to Ericsson within 120 days. If RCom fails to pay Rs 550 crore to Ericsson in 120 days, it will direct insolvency proceedings against the company, PTI reported citing NCLAT Chairman Justice S J Mukhopadhaya.
Earlier last year in December, Anil Ambani announced a mega plan to reduce the debt burden of Reliance Communications which included the sale of spectrum, fiber, telecom towers, MCNs and certain real estate assets in Delhi and Mumbai.