RCom or Reliance Communications is not doing very well, but the shares of RCom, headed by Mr. Anil Ambani, saw an increase to nearly 32% on Tuesday after the company announced another debt revival plan, which claims full debt resolution by March 2018. It was reported that the stock rose sharply by 30.78% to settle at Rs. 21.33 at BSE and during the day it went up to 4% to Rs. 23. But at NSE, the shares of the company increased to 31.90% which is to close at Rs. 21.50. Therefore, the company’s market valuation of the company went up by Rs. 1,388.88 crores to Rs. 5,898.88 crores after the announcement.
It was found that 695.80 lakh shares of the company were traded in terms of equity volume at BSE and over 49 crores shares changed hands at NSE during the day. Reliance Communications or RCom also announced another debt revival plan today and the company claimed full debt resolution by March but without involving any conversion of debt into equity and leaving the SDR framework. The company also announced the on boarding of a new strategic investor, but the company did not specifically name the new investor.
After announcing the resolution plan, the company chairman Anil Ambani told reporters in Mumbai that the new plan has the support of a Chinese lender and that had pulled it to the NCLT for dues running into USD 1.8 billion. This would see RCom, having a debt of over Rs. 44,000 crores, by bringing down its mountain of debt by Rs. 25,000 crores.
The chairman said that the debt resolution will see RCom in leaving the SDR framework with no conversion of debt into equity and zero write-off by lenders and also said that he further expects full closure by March 2018.