Reliance Communications shares plunge by 10%, Reliance Infra down 5% despite Anil Ambani's big talk
Anil Ambani shed some light on debt-laden Reliance Communications, which has been suffering losses for quite a few years now.
The share price of Reliance Infrastructure and its telecom arm Reliance Communications were on hotbed despite chairman Anil Ambani announcing some good news over its debt resolution process. In a shareholders meeting, Anil Ambani shed some light on debt-laden Reliance Communications, which has been suffering losses for quite a few years now.
Ambani said, “RCom lenders supportive of debt reduction efforts.” He also stated that, the company is in advanced stages of closing the deal with brother Mukesh Ambani’s Reliance Jio.
Therefore, Ambani said, “RCom to close debt resolution plan in few months.”
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For investors, Ambani said, “RCom realty will create Rs 250 billion value for investors.”
Among many developments, Ambani mentioned that, RCom will monetize India Enterprises and GCX Businesses. The company will also develop 30m sq commercial space in Navi Mumbai.
RCom is sitting on debt of Rs 46,000 crore, and to pare it, the company had to urgently sell its wireless assets to Jio for Rs 18,000 crore.
However, on BSE, the share price of RCom was trading at Rs 15.85 per piece down by Rs 1.35 or 7.85%. So far in trading session, the company has dropped by 9.88% with an intraday low of Rs 15.5 per piece.
RCom was not the only one who failed to see good response on its share price after chairman’s big talk. It’s parent Reliance Infra also faced the same fate today, however, at much lower rate.
In a major good news, Ambani said, “Reliance Infra to be debt free next year.”
According to Ambani, RInfra is targeting order book of Rs 500 billion by 2020. Not only this, the company will complete Versova - Bandra sea links by next 5 years. Further, defense will remain the focus area for the group.
Despite Ambani’s speech, investors looked disinterested and removed their money so much so, that RInfra’s share price tumbled by nearly 5% with intraday low of Rs 426.8 per piece. Currently, it is trading at Rs 428 per piece below Rs 19.20 or 4.29%.