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RCom shares tank nearly 16 pc on NCLT move

Press Trust of India  |  New Delhi 

Shares of plunged nearly 16 per cent a day after NCLT admitted an petition filed by against the company and two of its subsidiaries.

The stock fell sharply by 15.26 per cent to end at Rs 10.55 on BSE. Intra-day, it dropped 20 per cent to Rs 9.95.

On NSE, shares of the company slumped 15.72 per cent to close the day at Rs 10.45.

The company's market valuation declined Rs 525.36 crore to Rs 2,917.64 crore.

In terms of equity volume, 231.68 lakh shares of the company were traded on BSE and over 20 crore shares changed hands on NSE during the trade.

Weakness was also seen in other group stocks, with Reliance Naval and Engineering falling by 6.96 per cent, 2.46 per cent, 0.45 per cent and 0.45 per cent on BSE.

The (NCLT) yesterday admitted an petition filed by Swedish major against RCom and two of its subsidiaries seeking to recover Rs 1,150 crore.

had signed a seven-year deal in 2014 to operate and manage RCom's nationwide but has not been paid the bill.

The tribunal admitted the petition yesterday which could potentially result in delaying RCom's plans to sell assets to lighten its debt load.

In a statement, the company said, "RCom and two of its subsidiaries - and - await detailed order from NCLT, allowing the Ericsson application for admitting the companies to debt resolution under the IBC.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 16 2018. 17:25 IST