RCom hits record low on deferment of Flag Telecom IPO

The stock has slipped 7% in past two trading sessions on the BSE

Reliance Communications (RCom) is trading lower by almost 4% at Rs 59.60, also its record low on the Bombay Stock Exchange.The stock has slipped 7% in past two trading sessions after the debt-laden telecom firm put on hold the $1-1.5 billion initial public offering of its Singapore-based undersea cable unit, Flag Telecom, citing adverse market conditions.

“The company will await supportive market conditions and easing of prevailing global uncertainties to proceed with the offering/listing at an appropriate time in the future, in order to unlock the full value of the Flag Telecom assets in the best interests of its over 2 million shareholders," RCom said in a filing.

The stock has opened at Rs 61.60 and hit a high of Rs 62 on the Bombay Stock Exchange. A combined 5.5 million shares have changed hands on the counter till noon deals on both the exchanges.