RCom Shares Jump 15% As NCLAT Allows Asset Sale To RJio

RCom scrip after the approval by the NCLAT to sell its assets to Jio has surged by 15% in today's early morning session to Rs. 20.10 on the BSE. The surge in stock price has come on the back of National Company Law Appellate Tribunal or NCLAT's decision staying the earlier order of NCLT that allowed the insolvency of RCom and two other companies.

The asset sale of RCom aggregating in value to Rs. 181 billion to Jio and Brookfield has been given a go-ahead by the NCLAT.

In a statement, the company said, The NCLAT vide its orders dated May 30, 2018 stayed, with immediate effect, all the three orders dated May 15, 2018 whereby NCLT had admitted the Company and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited to Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016".

The assets sale includes spectrum, fiber, telecom towers, MCNs and certain real estate assets in Delhi and Chennai, it added.

And, after getting away with legal hurdles, the company has managed to reduce Rs. 250 billion debt through its first phase of asset monetization plan.

At the time of reporting, the stock of RCom was trading higher by 9% at Rs. 19.25 on the BSE.

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