ADAG shares gain after Reliance Communications pays Ericsson dues
RCom, Reliance Naval, Reliance Infrastructure, Reliance Power, Reliance Capital, Reliance Home Finance and Reliance Nippon were up in the range of 3 to 10 per cent on the BSE in intra-day trade.
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Shares of Anil Dhirubhai Ambani Group (ADAG) companies were trading higher with Reliance Communications (RCom) hitting upper circuit of 10 per cent at Rs 4.40 on the BSE after the company cleared the entire dues to Ericsson India to purge the contempt of a Supreme Court order.
The trading volumes on RCom counter more than tripled with a combined 100 million equity shares changing hands on the NSE and BSE till 09:32 am. There were a combined pending buy orders for 15 million shares on both the exchanges.
“The requisite payment of Rs 550 crore and interest thereon to Ericsson has been completed today in compliance of the judgment of the Hon'ble Supreme Court,” RCom said in a press release on Monday after market hours.
Late last month, the Supreme Court had ordered Anil Ambani's RCom and two of its directors to pay Ericsson within four weeks or face a three-month jail term for contempt of court.
Meanwhile, RCom and Reliance Jio agreed to terminate the asset-sale agreement on Monday. RCom has cited delays in approval from the government and lenders as the reason.
The RCom group said they were “committed to a comprehensive resolution of its overall debt, with transparency, certainty and finality, through the NCLT (National Company Law Tribunal) process”.
Besides RCom, Reliance Naval and Engineering (up 10 per cent at Rs 10.10), Reliance Infrastructure (9 per cent at Rs 146), Reliance Power (6 per cent at Rs 11.95), Reliance Capital (6 per cent at Rs 191), Reliance Home Finance (5 per cent at Rs 30.350) and Reliance Nippon Life Asset Management (3 per cent at Rs 200) were up in the range of 3 to 10 per cent on the BSE in intra-day trade. In comparison, the S&P BSE Sensex was up 0.14 per cent at 38,149 points.
In past three months, most of the ADAG stocks have underperformed the market by falling up to 70 per cent, against 5 per cent rise in benchmark index.
The trading volumes on RCom counter more than tripled with a combined 100 million equity shares changing hands on the NSE and BSE till 09:32 am. There were a combined pending buy orders for 15 million shares on both the exchanges.
“The requisite payment of Rs 550 crore and interest thereon to Ericsson has been completed today in compliance of the judgment of the Hon'ble Supreme Court,” RCom said in a press release on Monday after market hours.
Late last month, the Supreme Court had ordered Anil Ambani's RCom and two of its directors to pay Ericsson within four weeks or face a three-month jail term for contempt of court.
Meanwhile, RCom and Reliance Jio agreed to terminate the asset-sale agreement on Monday. RCom has cited delays in approval from the government and lenders as the reason.
The RCom group said they were “committed to a comprehensive resolution of its overall debt, with transparency, certainty and finality, through the NCLT (National Company Law Tribunal) process”.
Besides RCom, Reliance Naval and Engineering (up 10 per cent at Rs 10.10), Reliance Infrastructure (9 per cent at Rs 146), Reliance Power (6 per cent at Rs 11.95), Reliance Capital (6 per cent at Rs 191), Reliance Home Finance (5 per cent at Rs 30.350) and Reliance Nippon Life Asset Management (3 per cent at Rs 200) were up in the range of 3 to 10 per cent on the BSE in intra-day trade. In comparison, the S&P BSE Sensex was up 0.14 per cent at 38,149 points.
In past three months, most of the ADAG stocks have underperformed the market by falling up to 70 per cent, against 5 per cent rise in benchmark index.