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RCom shares zoom nearly 32% on debt reduction plan

Crippled Reliance Communications (RCom) has announced yet another debt revival plan, claiming full debt resolution by March next year.

business Updated: Dec 26, 2017 17:44 IST
Press Trust of India
Press Trust of India
Press Trust of India, New Delhi
RCom shares,RCom,Reliance Communications
Anil Ambani, chairman of Reliance Communication, addresses a news conference at the company’s headquarters in Mumbai.(Reuters)

Shares of Reliance Communications (RCom) surged nearly 32% after the company announced on Tuesday yet another debt revival plan claiming full debt resolution by March.

The stock rose sharply by 30.78% to settle at Rs 21.33 on BSE. During the day, it zoomed 41% to Rs 23.

At NSE, shares of the company soared 31.90% to close at Rs 21.50.

The company’s market valuation went up by Rs 1,388.88 crore to Rs 5,898.88 crore.

In terms of equity volume, 695.80 lakh shares of the company were traded on BSE and over 49 crore shares changed hands at NSE during the day.

Crippled Reliance Communications (RCom) announced yet another debt revival plan claiming full debt resolution by March but without involving any conversion of debt into equity and exiting the SDR framework, apart from coming on- board of a strategic investor.

But the company did not name the new investor.

Announcing the resolution plan, company chairman Anil Ambani told reporters in Mumbai that the new plan has the support of a Chinese lender that had dragged it to the NCLT for dues running into USD 1.8 billion, and would see RCom bringing down its mountain of debt by Rs 25,000 crore.

Debt resolution involves RCom exiting SDR framework with no conversion of debt into equity and zero write-off by lenders, Ambani said, adding he expects full closure by March 2018.

The company has a debt of over Rs 44,000 crore.

First Published: Dec 26, 2017 17:43 IST