Reliance Communications shares dropped nearly 4 per cent today amid reports that China Development Bank (CDB) has filed an insolvency case against the telecom firm, which reportedly owes nearly Rs 9,000 crore to CDB.
At BSE, early in the day, the stock stumbled 8.61 per cent to Rs 12.20. But the stock closed at Rs 12.90, down by 3.37 per cent.
The performance at NSE also remained the same as the shares of the company went down 3.74 per cent to close at Rs 12.85.
On Monday, after the news about CDB's filing of insolvency case broke out, BSE had sought clarification from Reliance Communications. But in a clarification to BSE, RCom denied any such actions against it. "The company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media," RCom spokesperson said.
However, in the interest of all stakeholders, the spokesperson said: "The company is engaged through the Joint Lenders Forum (JLF) with all its lenders for a successful resolution of the SDR process. China Development Bank has also been actively participating in the JLF."
The company however, expressed its surprise over the "untimely and premature action of CDB" of filing an application at NCLT.
Furthermore, RCom today announced the sale of its DTH arm Reliance BIG TV for an undisclosed amount. The company statement said that the company has got into a "binding share purchase agreement" with Pantel Technologies and Veecon Media & Television. The buyers will acquire the entire shareholding of Reliance BIG TV (RBTV) with business on an "as-is, where-is" basis, the statement added.
RCom reportedly has a debt of nearly Rs 45,000 crore. Earlier this year, Moody's and Fitch had downgraded their credit ratings on RCom. Moody's has a “Ca” rating on RCom's senior secured bonds, with a negative outlook.
(With inputs from agencies)
