ADAG stocks and magic of debt reduction; share price up 55% since mid-Dec

On an average, the share price of group firms is up over 55% since mid-December

The Murphy’s Law says “you will always find something in the last place you look”. This was true with Anil Ambani’s group companies when a long-awaited turnaround for the group (Anil Dhirubhai Ambani Group, or ADAG) came from eye of the problems itself — Reliance Communications (RCom). From mid-December last year, when the word was ripe that the group’s telecom arm would finally monetise assets to cut debt, the RCom stock has appreciated almost 182 per cent. Indeed, the telecom company underwent a massive restructuring which ensured that lenders may not take a haircut on their exposure to RCom as