The Hindu Business Line : RCom alleges price hammering in shares, seeks SEBI probe

Mumbai, July 4 Reliance Communications (RCom) shares went up 12.50 per cent on Friday amidst reports of a complaint made to SEBI alleging price hammering of RCom and ADAG group companies’ shares.

RCom shares had touched a 52-week low of Rs 381.05 on the BSE on Thursday but bounced back today and closed at Rs 438.20.

It appears that from June 20 the open interest position started declining progressively till the closing of the contract, may be due to shorting.

Prices in the cash market also started falling from June 20 and reached a 52-week low on July 3.

RCom shares have fallen by 18.87 per cent over the past one month, more than the fall in the BSE Sensex. Meanwhile, the other telecom shares have also taken a dip during the past one-month period. Bharti Airtel has fallen by 11.49 per cent, Idea Cellular (17.24 per cent) and MTNL (6.84 per cent). It is learnt that RCom has sent a complaint to SEBI and the regulator is looking into the matter by calling for data from the exchanges.

RCom share prices have also moved lower from its January high of Rs 844 progressively and had dropped to Rs 597 on May 20.

RCom is understood to have sought a probe by the regulator in the alleged price hammering.

MTN talks

The drop in market price of the company assumes significance in the context of the RCom’s plan to sell part of its stake to the South African telecom major MTN.

RCom’s 45-day pact for talks with MTN, which began in May 27, will expire on July 9.

The Mukesh Ambani-led Reliance Industries Ltd has opposed the sale to MTN claiming that RIL has the first right of refusal if RCom wants to sell its equity stake.

Prices of other ADAG group companies also dropped significantly in the past one month. Reliance Infrastructure fell by 27.71 per cent, Reliance Power 32.77 per cent, Adlabs Ltd 33.05 per cent, Reliance Capital 7.05 per cent and Reliance Natural Resources Ltd by 28 per cent.

Related Stories:
Reliance Comm declines on merger uncertainty
Reliance: The sibling rivalry continues
Reliance Comm-MTN merger talks could be in trouble

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