Anil Ambani Group shares under pressure; RCom plunges 48%

Ericsson alleges RCom has sold its assets and the money received was not used to clear the dues
Shares of Anil Dhirubhai Ambani Group (ADAG) companies were under pressure with Reliance Communication (RCom) tanking 48 per cent to Rs 6, also its record low in early morning trade on the BSE after the company said it will propose a similar debt resolution plan to the National Company Law Tribunal (NCLT) that it had been pursuing outside the court.

On Friday after market hours, RCom said it would be filing for bankruptcy in the NCLT after the telco failed to take necessary approvals from lenders and the Department of Telecommunications (DoT) to conclude its deal with Reliance Jio. It informed the exchanges on Sunday that it plans to propose a similar debt resolution plan in the tribunal as was being earlier pursued with creditors.

Besides RCom, Reliance Capital (down 14 per cent at Rs 162), Reliance Naval and Engineering (down 13 per cent at Rs 10.32), Reliance Infrastructure (down 10 per cent at Rs 240), Reliance Home Finance (down 9 per cent at Rs 31.55), Reliance Power (down 9 per cent at Rs 24) and Reliance Nippon Life Asset Management (down 5 per cent at Rs 129) were trading lower by up to 14 per cent on the BSE in intra-day trade so far. In comparison, the S&P BSE Sensex was down 0.27 per cent at 36,372 points.

RCom said the key elements of the plan would remain unchanged. This includes the sale of spectrum and all strategic telecom infrastructure assets, sale of realty assets apart from development of the Navi Mumbai real estate projects, which spans across 30 million square feet at the Dhirubhai Ambani Knowledge City complex.

Announcing its decision to move the NCLT, the debt-strapped firm said, “Despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans and the overall debt resolution process is yet to make any headway. Accordingly, the board decided that the company would seek fast-track resolution through the NCLT. The board believes this will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days.” CLICK HERE TO READ FULL REPORT

COMPANY LATEST PREV CLOSE LOSS(%)
REL. COMM. 7.36 11.60 -36.55
RELIANCE CAPITAL 170.10 189.15 -10.07
RELIANCE POWER 23.80 26.35 -9.68
RELIANCE NAV.ENG 10.71 11.82 -9.39
RELIANCE HOME 31.50 34.55 -8.83
RELIANCE INFRA. 249.85 266.95 -6.41
RELIANCE NIP.LIF 133.65 135.80 -1.58