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Shares of Reliance Communications (RCom) jumped as much as 20 per cent to Rs 21, their highest in nine sessions, as the company expects to complete the asset sale in coming weeks.
Reliance Communications cleared a legal hurdle preventing it from selling its assets when the National Company Law Appellate Tribunal had on Wednesday froze insolvency proceedings against the beleaguered telecom operator.
RCom plans to sell its assets to Mukesh Ambani’s Reliance Jio and private equity player Brookfield to pare debt.
On Wednesday, the appellate tribunal had decided to overturn the NCLT order after Ericsson agreed to settle the dispute by accepting RCom’s offer of ₹550-crore as an up-front payment.
Meanwhile, RCom's quarterly consolidated net loss widened to Rs 19,827 crore ($2.94 billion), from a loss of Rs 1,112 crore last year on provisioning for asset impairments.
Over 100 million shares changed hands in the first 20 minutes of trade vs 30-day average of around 150 million shares. The stock has an estimated PE of -2.16, lagging sector average of 24.20. Shares of the debt-laden co have fallen 51.6 per cent this year as of Wednesday's close.
(With inputs from Reuters)
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