Shares of Reliance Communications Plunged by Over 48% in Morning Trade

Important selling was also seen in other group shares, with Reliance Power cracking 29.22% follow by Reliance Capital (down 19.37%), Reliance Infrastructure (16.51%) and Reliance Naval and Engineering (13.7%) on the BSE.
Shares of Reliance Communications Plunged by Over 48% in Morning Trade

Shares of Reliance Communications plunge by over 48% in morning trade today, plummeting to an all-time low of Rs 6. On Friday, the Anil Ambani Company announce in a narrow file that it will be a file for bankruptcy and will search for fast-track declaration following its breakdown to sell its assets to reimburse lenders. The stock is at present trading at Rs 7.75 apiece on the BSE and is down 46% in the year so far.

More than 120 million shares of RCom distorted hands in less than 45 minutes of trade compared to its 30-day standard of 63 million shares, Reuters reported. Heavy selling was also seen in other group shares, with Reliance Power cracking 29.22% followed by Reliance Capital (down 19.37%), Reliance Infrastructure (16.51%) and Reliance Naval and Engineering (13.7%) on the BSE.

It is predictable that RCom has been reeling under debt of over Rs 46,000 crore. The board of director on Friday reviews the progress of the company's debt declaration plans since the incantation of strategic debt declaration on June 2, 2017. The company said the board renowned that in spite of the passage of over 18 months, lenders have conventional zero precede from the planned asset monetization plans, and the overall debt declaration procedure is yet to make any headway.

Following this development, Rcom's operational creditor Ericsson, which is owed Rs 550 crore, is allegedly set to file yet another request in the Supreme Court to safeguard its interests. Last month the Swedish telecom apparatus maker had filed its second disrespect appeal in the Supreme Court against Ambani, requesting the government to issue directions to stop Ambani from leaving the country and sought jail term for him unless all dues were empty. Ambani is programmed to emerge in the top court next week in association with this petition.

"The disapproval cases against the chairman will continue and as per SC's orders Ambani will have to appear on February 11". "Applying for bankruptcy is another way of circumventing the top court's orders to pay us Rs 550 crore."

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