RCom shares finally go up after 3 days of acute dip, end 2 percent higher

Shares of Reliance Communications recovered on Wednesday after three-days of sharp fall, ending nearly 2 percent higher. The stock plunged 10.84 percent to Rs 4.85 - its record low - in intra-day trade on the BSE. However, during the fag-end of the session it stock bounced back, rising 0.74 percent to close at Rs 5.48.

On NSE, shares pared early decline and closed at Rs 5.65, up 1.80 percent. In terms of traded volume, 225.08 lakh shares changed hands on BSE and over 27 crore shares were traded on NSE. On Monday, RCom stock ended nearly 35 percent lower and fell by another 28.5 percent the next day after the company decided to opt for insolvency proceedings. In three-days, shares fell by 53.70 percent.

Group shares, Reliance Infrastructure and Reliance Capital still ended lower, plunging 32.22 percent and 5.52 percent, respectively, on the BSE. "RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company had said in a statement on February 1.

It is estimated that RCom has been reeling under a debt of over Rs 46,000 crore. On February 1, RCom's board 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.)