Shares of Reliance Communications (RCom) has dipped 9% to Rs 59.45, also its lifetime low on reports that equity research firm Veritas has downgraded the company, to sell with the target price of Rs 15.
"RCom is entering a phase of maximum uncertainty... Exceedingly high financial leverage, accompanied with debt repayment obligations of approximately $2.2 billion over the next twenty-four months, at a time when EBITDA in core business operations is stagnating, is a significant challenge for the management team," the NDTV report suggests quoting Veritas report.
The stock opened at Rs 61 and hit a high of Rs 63.75 on the National Stock Exchange. A combined 6.97 million shares have already changed hands on the counter in opening deals against an average around 10 million shares that were traded daily in past ten trading days.