Shares of Anil Ambani-led Reliance Communications crashed on Monday, after the firm filed for insolvency on Friday. RCom share price plunged by more than 48% to Rs 7.60 in the morning trade. Notably, in a stock exchange filing, RCom said on Friday that its lenders had not received any proceeds from asset monetization plans, and that its overall debt resolution process had not made any progress.
“This unfortunate outcome is attributable to the following key unresolved challenges: Lack of 100% approvals and consensus, as mandated by RBI’s 12th February 2018 circular, on all important issues, amongst over 40 lenders, Indian and foreign despite the passage of 12 months and over 45 meetings and; Pendency of numerous legal issues at High Courts, TDSAT and Supreme Court impeding progress at various stages,” said the firm.
RCOM and only two of its subsidiaries, Reliance Telecom and Reliance Infratel will take appropriate steps shortly to implement the Board decision, RCom said, adding that there will be no impact on the business and operations of other subsidiaries of the Company, including inter alia GCX, Reliance IDC, etc. Shares of other Anil Ambani group firms such as Reliance Capital, Reliance Infrastructure and Reliance Power also slumped in trade on Monday morning. Reliance Capital shares tanked by more than 19% to Rs 154.50 on Monday morning. Reliance Infrastructure shares slumped by more than 16% to hit the day’s low at Rs 222.85.
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