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RCom shares rally 15% on bondholders approval to sell assets to Reliance Jio


(G.N.S) Dt. 21
Shares of Anil Ambani’s telecom company Reliance Communications rallied as much as 15% in the intraday dealings on Wednesday as the company got bondholders approval to monetise its assets to Mukesh Ambani-controlled Reliance Jio Infocomm Ltd. “The holders of the Company’s US$ 300 million bonds, at their meeting held on March 20, 2018, at London, approved with overwhelming majority the sale of assets to Reliance Jio Infocomm Ltd and also monetization of other real estate assets. The bondholders also approved release of their security on the Company’s assets and to accept part prepayment of their outstanding bonds,” Reliance Communications said in a press release on Wednesday.
Following the development, shares of Reliance Communications surged as high as 14.94% to a day’s high of Rs 26.55 before ending up 9.09% at Rs 25.2 on NSE while the stock zoomed 12.1% to a day’s high of Rs 25.95 before concluding up 8.86% at Rs 25.2 on BSE on Wednesday. A huge trading volume has been observed in the shares of Reliance Communications, as at end of day, more than 14.95 crore shares exchanged hands on both NSE and BSE with about 13.51 crore shares on NSE alone.
Shares of Reliance Communications opened flat today at Rs 23.05 as against the previous closing price of Rs 23.1 on NSE. A little spike was seen in the shares at around 12:20 pm followed by a sharp surge between 1:35 pm and 2:30 pm. The stock of RCom has made a 52-week high of 41 on 5 April 2017 and a low of Rs 9.6 on 15 November 2017 on NSE.
Earlier in December last year, Reliance Communications signed a definitive agreement with Reliance Jio Infocomm Ltd for the sale of towers, MCNs and fibre which involved transferring of 4G services and 43,000 towers to Reliance Jio. In the same month, Anil Ambani, Chairman of ADAG (Anil Dhirubhai Ambani Group) presented a plan to revive debt-ridden RCom.
On the news of asset sale, shares of Reliance Communications soared 41% intraday (26 December 2017) after Anil Ambani, Chairman, ADAG said the total debt of the company would be reduced by Rs 39,000 crore and the company would close all the transactions by January-March 2018.

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