On Monday, RCom stock ended nearly 35 per cent lower and fell by another 28.5 per cent the next day after the company decided to opt for insolvency proceedings.
Shares of Reliance Communications fell Thursday, falling over 6 per cent, with group companies also tumbling. RCom stock tumbled 5.29 per cent to close at Rs 5.19 on the BSE. During the day, it tanked 10.40 per cent to Rs 4.91. On the National Stock Exchange, shares plunged 6.36 per cent to close at Rs 5.15. Shares of Reliance Communications recovered on Wednesday after three days of sharp fall, ending nearly 2 per cent higher.
On Monday, RCom stock ended nearly 35 per cent lower and fell by another 28.5 per cent the next day after the company decided to opt for insolvency proceedings. Selling was also seen in other group shares Thursday, where Reliance Infrastructure plummeted 28.05 per cent, Reliance Power 21.96 per cent, Reliance Capital plunged 19.17 per cent and Reliance Naval and Engineering Ltd 5.35 per cent on the BSE. “RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company had said in a statement on February 1.
It is estimated that RCom has been reeling under a debt of over Rs 46,000 crore. On February 1, RCom’s board reviewed the progress of the company’s debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.
“Accordingly, the board decided that the company will seek fast-track resolution through NCLT, Mumbai. The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days,” the statement further said.