Shares of Reliance Communications Ltd wiped off their early losses as the company said that it will reduce its debt by ₹25,000 crore before September 30.
Reliance Communications, widely known as RCom, sought to reassure investors in its quarterly conference call on Monday, saying it was in talks with its lenders to defer loan instalments coming due in the next four months as it works on closing two deals.
The firm, controlled by billionaire Anil Ambani, plans to repay lenders Rs 11,000 crore ($1.7 billion) and refinance an even larger chunk by end-September, if lenders sign off on the merger of its wireless segment with rival Aircel and sale of a majority stake in its tower unit to Canada's Brookfield.
RCom shares fell as much as 7.6 per cent in early trade. However, the stock rebounded and was trading up by 3.66 per cent at Rs 21.25 on the BSE at 12.10 pm local time.
It had plunged 20.4 per cent on Monday.