RCom surges 57% today on buzz of settlement talks with Ericsson

The stock surged 56.9% to Rs 16.55 on the BSE on Thursday after the media report suggested that RCom and Ericsson inform NCLT in Mumbai that they are in settlement talks.

Shares of Reliance Communications (RCom) surged 56.9% to end at Rs 16.55 per share on the BSE after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks. RCom erases its entire 30% decline past one week.

The BSE said the exchange has sought clarification from Reliance Communications Ltd on May 17, 2018, with reference to news appeared on ET NOW dated May 17, 2018 quoting " RCom, Ericsson inform NCLT that they are in settlement talks- Rcom, Ericsson request NCLT to keep insolvency order in abeyance"

The reply is awaited.

“Reliance Communications and two of its subsidiaries Reliance Telecom and Reliance Infratel, await the detailed orders of the Hon’ble National Company Law Tribunal (NCLT), Mumbai, allowing the Ericsson application for admitting the companies to debt resolution under IBC,” the company had said on clarification on news appeared quoting ‘NCLT admits Ericsson's bankruptcy plea against RCom, subsidiaries.

The Companies will decide the next course of action after studying the orders, it added.