Shares of Reliance Communications fell further Tuesday, tumbling 28.5 per cent after the company decided to opt for insolvency proceedings. RCom stock plummeted 27.95 per cent to close at Rs 5.44 on BSE. Intra-day, it dived 32.84 per cent to Rs 5.07 -- its record low.
At NSE, shares plunged 28.47 per cent to close at Rs 5.40. Shares of RCom Monday ended nearly 35 per cent lower. The plunge in RCom shares has wiped out Rs 1,703.55 crore from its market valuation in two days.
Few group shares too tumbled Tuesday, with Reliance Power plunging 30.12 per cent and Reliance Naval and Engineering 13.39 per cent on BSE. Heavy selling was also seen in other group shares on 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 a 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.)