RCom shares surge 7.5% as co moves NCLAT challenging order

Shares of Reliance Communications (RCom) moved up by 7.5 per cent today after the company moved NCLAT challenging the order of NCLT allowing a plea for its insolvency filed by Swedish telecom equipment major Ericsson.

The stock surged 7.46 per cent to end at Rs 14.40 on BSE. During the day, it zoomed 19 per cent to Rs 15.95.

At NSE, shares of the company jumped 7.49 per cent to close at Rs 14.35.

In terms of equity volume, 327.44 lakh shares of the company were traded on BSE and over 29 crore shares changed hands at NSE during the day.

Anil Ambani-run RCom's plea is expected to be heard by National Company Law Appellate Tribunal (NCLAT) in the coming week.

RCom informed stock exchanges that it has approached NCLAT along with its two subsidiaries - Reliance Telecom and Reliance Infratel- to stay the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on May 15.

"The Directors of RCom and two of its subsidiaries... today filed appeals before NCLAT challenging and praying to stay the order of NCLT Mumbai, whereby Ericsson applications had been allowed to be admitted for debt resolution under the NCLT IBC (Insolvency and Bankruptcy Code) process," said an RCom spokesperson.