Shares of Anil Ambani's telecom company RCom dropped as much as 7% on Thursday as India's highest judicial body Supreme Court denied lifting the stay on company's asset sale to Mukesh Ambani-controlled Reliance Jio Infocomm Ltd.
Shares of Anil Ambani’s telecom company RCom dropped as much as 7% on Thursday as India’s highest judicial body Supreme Court denied lifting the stay on company’s asset sale to Mukesh Ambani-controlled Reliance Jio Infocomm Ltd. According to a PTI report, The Supreme Court bench, comprising Justices A K Goel, RF Nariman and UU Lalit, has refused to lift the stay ordered by Bombay High Court on RCom asset sale. The Supreme Court will hear the appeals from the consortium of banks and Reliance Communications against the stay of assets sale to Reliance Jio Infocomm by High Court on 5 April 2018. On the course of which, stock exchanges have sought a clarification from Reliance Communications to which the reply is still awaited.
Following the refusal, by India’s top judicial body Supreme Court, shares of ADAG’s telecommunications firm RCom nosedived as high as 6.92% to a day’s bottom of Rs 23.55 on NSE while the stock crashed 6.15% to a day’s low of Rs 23.65 on BSE. A massive surge in trading volumes has been witnessed in the shares of Reliance Communications, as at 2:15 pm, more than 12 crore shares of RCom exchanged hands on both NSE and BSE with about 11 crore shares on NSE alone.
Reportedly, Reliance Communications owes an amount of Rs 42,000 crore to Indian lenders. Apart from SBI, 24 other Indian lenders constitute the Joint Lenders Fora, including Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Punjab National Bank, IDBI Bank, UCO Bank, Indian Overseas Bank, Dena Bank, Corporation Bank, Union Bank, United Bank, LIC and Barclays Bank. Yesterday only, State Bank of India moved the Supreme Court challenging a tribunal’s order, which was upheld by the Bombay High Court, allowing Ericsson to stake a claim on RCom Consolidated’s assets, PTI reported.
Earlier yesterday, Reliance Communications shares rallied as much as 15% in the intraday trades after Anil Ambani’s telecom company got bondholders approval to monetise its assets to Mukesh Ambani-led Reliance Jio. Following the development, shares of Reliance Communications surged as high as 14.94% to a day’s high of Rs 26.55 before ending up 9.09% at Rs 25.2 on NSE.