Rcom Shares Rally 103% In Two Days

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In an extension to yesterday's surge in the share price of Anil Ambani led Reliance Communications Limited (RCom) has jumped by almost 103 percent at Rs 21.30 today on NSE (National Stock Exchange).

Rcom Shares Rally 103% In Two Days

The stock opened as low as Rs 10.55 on Thursday, after news of RCom's possible bankruptcy. Earlier this week, NCLT (National Company Law Tribunal) had admitted three insolvency petitions to the company after Ericsson sought to recover Rs 1,154 crore from RCom and its two subsidiaries- Reliance Telecom Ltd and Reliance Infratel Ltd.

Later in the afternoon on Thursday, BTVI said in a twitter post that RCom was in external settlements with Ericsson to withdraw its petition citing unidentified sources, which led to 12.1 lakh shares (Bloomberg reported) being traded in a single block. The trade volume was 17 times its 30-day average.

However, news reports late in the evening on Thursday said that the NCLT had rejected RCom's plea to hold the insolvency order placed against it. Ericsson has also not formally confirmed the receipt of any settlement proposal.

Earlier this year, the debt-ridden RCom had signed an agreement with Reliance Jio, which had agreed to buy its assets (including wireless spectrum, tower, optical fibre network and media convergence node assets) for an undisclosed amount. NCLT's insolvency petition reported this week, however, puts the sale agreement in question.

RCom reported a debt of Rs 45,733 crore as of March 2018.

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