Reliance Communications surges 9% on new debt repayment plan

NEW DELHI: Shares of Anil Ambani-led Reliance Communications (RCom) rallied over 9 per cent on Tuesday after the company agreed a new debt repayment plan with lenders, including a pledge to raise up to Rs 17,000 crore ($2.6 billion) by selling assets such as mobile towers.

The scrip gained 9.24 per cent to close the day at Rs 17.15 on BSE. Shares of the company opened at Rs 16.60 and touched a high and low of Rs 18.20 and Rs 16.50, respectively.

Around 90 lakh shares of Reliance Communications were traded in 9 pre-market deals on Tuesday.

The debt-laden company further said that it would repay lenders an additional Rs 10,000 crore through the sale and commercial development of its real estate near Mumbai and in eight other cities.

The announcement comes after the unravelling of its previous debt repayment plan, which had hinged on merging its mobile operations with rival Aircel and selling a 51 per cent stake in its tower arm to Canada's Brookfield.

RCom is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the strategic debt restructuring process as per applicable RBI guidelines.

The stock had hit 52-week high of Rs 47.30 on November 2, 2016 and 52-week low of Rs 15.60 on October 30, 2017.