Shares of Reliance Communications fell further Tuesday, tumbling nearly 26 per cent, after the company decided to opt for insolvency proceedings. RCom shares plunged 24.90 per cent to Rs 5.67 -- its record low -- on the BSE. At the NSE, shares plummeted 25.82 per cent to Rs 5.60. Shares of Reliance Communications Monday ended nearly 35 per cent lower.
Few group shares too tumbled, with Reliance Power Ltd plunging 13.74 per cent and Reliance Naval and Engineering Ltd falling 16.46 per cent on the BSE. Heavy selling was also seen in other group shares Monday. "RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company said in a statement Friday. It is estimated that RCom has been reeling under debt of over Rs 46,000 crore.
RCom's board Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The board noted that 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, the statement said.
"Accordingly, the board decided that the company will seek fast-track resolution through NCLT, Mumbai. The board believes this course of action 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," the statement said.
(With inputs from agencies.)