Reliance Communications shares drop nearly 10% post CDB action, DTH sale announcement
After RCom said it was 'surprised' by China Development Bank's move to file a petition with NCLT, shares of the company came under fire.
- RCom has been taken to NCLT by China Development Bank.
- The company has an outstanding debt of nearly Rs 45,000 crore.
- It reported a Q2FY18 loss of Rs 2,709 crore.
Performance of Reliance Communications stock price came under fire on BSE Sensex on Tuesday, as the company responded to allegations of insolvency.
RCom shares fell as much as 9.4%, the most intraday since November 15, a report by Bloomberg said. The Anil Ambani-led company has been taken to bankruptcy court over insolvency issue to recover Rs 11,460 crore.
“The company is engaged through the JLF with all its lenders for a successful resolution of the SDR process. The China Development Bank has also been actively participating in the JLF. The Company is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT,” RCom said in a BSE filing on Monday.
The CDB moved National Company Law Tribunal on November 24. RCom, however, said it has not received any official notice from the bank.
Shares of the company were trading down 4.49% at Rs 12.75 apiece on BSE Sensex at 1107 hours.
The telecom operator has been reeling under a massive debt of Rs 45,000 crore. It reported a second quarter loss of Rs 2,709 crore for the July to September FY18 period.
RCom also announced 100% stake sale of its Direct-to-Home (DTH) services across India.
“Pursuant to this transaction, the buyers will acquire the entire shareholding of RBTV with business on an “as-is, where-is” basis, along with existing trade and contingent liabilities,” the company said.
The company entered into a binding Share Purchase Agreement with Pantel Technologies Pvt Limited and Veecon Media & Television Limited.
“The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV,” RCom added.