RCom shares fall further at nearly 8% in early trade on concerns about loan repayments
Shares in Indian telecom operator Reliance Communications (RCom) dropped on Tuesday, adding to a sharp slide a day earlier, hurt by investor concerns over its ability to service its loans.
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 installments 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 110 billion ($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.
Despite those plans, Reliance Communications (RCom) shares fell as much as 7.6% in early trading on Tuesday before paring losses to be down 4%. It plunged 20.4% on Monday.
At 11:03 hours, the stock of Reliance Communications (RCom) was trading down 3.17% or Rs 0.65 at Rs 19.85 on the BSE.
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