Reliance Communications (RCom) dipped 5% to Rs 16.15 on the BSE in intra-day trade in an otherwise strong market after media reports suggested that the telecom company shutting down its direct-to-home (DTH) business. The stock was trading close to its record low of Rs 15.90 touched on October 12, 2017 in intra-day trade.
According to a Business Standard report, RCom, which is in the midst of a debt restructuring, is shutting down its direct-to-home television business from next month after it failed to find any buyer for the business.
RCom earlier tried to sell the company to rivals including the Sun group but later backed out citing low valuation. The company claims 5 million subscriber base as compared to Dish-Videocon merged entity which has close to 28 million subscribers, added report. CLICK HERE TO READ FULL REPORT
The BSE said the Exchange has sought clarification from Reliance Communications on October 25, 2017 with reference to news appeared in www.business-standard.com dated October 25, 2017 quoting "RCom to shut down DTH business next month". The reply is awaited.
At 11:31 AM; the stock was trading 2.3% lower at Rs 16.60 on BSE, as compared to 0.95% rise in the S&P BSE Sensex. A combined 23.63 million shares changed hands on the counter on the BSE and NSE.
In past three months, the stock tanked 35% from Rs 25.50 against 2% gain in the benchmark index. It touched a 52-week high of Rs 47.75 on October 25 last year and an all-time high of Rs 844 on January 10, 2008 in intra-day trade.