Mumbai: The stock exchanges have sought clarification from Reliance Communications Ltd today, with reference to media reports that say Reliance Communications and Ericcson have informed the National Company Law Appellate Tribunal (NCLAT) that they are in settlement talks and have requested NCLT to keep the insolvency order on RCom in abeyance.
Reliance Communications is yet to respond to the stock exchanges, but the stock has rallied sharply with investors grabbing it up following the reports.
Earlier, it was reported that the NCLT had admitted a plea by Ericcson which has stalled Reliance Communications Limited's plan to sell its assets to Reliance Jio Infocomm Ltd. Through sale of assets, the Anil Dhirubhai Ambani led company was seeking to reduce its $7 billion debt.
Reliance Jio had signed an agreement with RCom in December 2017 for sale of a majority of the wireless assets of RCom for an undisclosed amount. Both companies signed agreements for sale of wireless spectrum, tower, optical fibre network and media convergence node assets.
Ericsson has sought Rs 1154 crore from RCom and two of its arms Reliance Telecom Ltd and Reliance Infratel Ltd., after having signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network.
The Reliance Communications stock vaulted to Rs 15.75 on the National Stock Exchange, gaining 50% in the process. On BSE, the stock spurted to Rs 15.65.
On NSE, the RCom counter has clocked a volume of about 425 million shares so far in today's session. On BSE, the counter has clocked a volume of 41.3 million shares so far in the session, nearly five times the average daily volume seen at the counter.
The stock, which had tumbled to a low of Rs 9.60 on 15 November 2017, bounced back swiftly to record a 52-week high of Rs 40.15 by end December 2017, buoyed by news that Mukesh Ambani-led Reliance Jio will acquire RCom's mobile business assets including spectrum, mobile towers and optical fibre network of the company.
Apart from Reliance Communications, the other ADAG stocks Reliance Naval and Engineering (28%), Reliance Power (8%), Reliance Capital (5.3%) and Reliance Infrastructure (4.2%) have also moved up sharply in today's session.