Reliance Communications rose 4.93% to Rs 24.50 at 14:33 IST on BSE after the Supreme Court vacated stay granted in favour of Ericsson by the Bombay High Court.
The announcement was made during trading hours yesterday, 5 April 2018. Shares of Reliance Communications (RCom) rose 4.47% to settle at Rs 23.35 yesterday, 5 April 2018.Meanwhile, the S&P BSE Sensex was up 12.06 points, or 0.04% to 33,608.86.
On the BSE, 1.27 crore shares were traded in the counter so far compared with average daily volumes of 85.41 lakh shares in the past two weeks. The stock had hit a high of Rs 25.20 and a low of Rs 23.55 so far during the day. The stock hit a 52-week high of Rs 41.77 on 29 December 2017. The stock hit a record low of Rs 9.60 on 15 November 2017.
The Supreme Court (SC) yesterday, 5 April 2018, lifted the stay granted in favor of Ericsson by the Bombay High Court, in relation to asset sales by RCom. The SC has directed that secured lenders can proceed with the asset sales in accordance with law.
Accordingly, there is now no bar in immediately completing the asset sales of spectrum, MCNs (media convergence node) and real estate, and the same shall be concluded expeditiously.
On the stay granted by the National Company Law Tribunal (NCLT) in favor of minority investors holding approximately 4% shareholding in Reliance Infratel, which is limited to tower and fibre assets, the SC has not made any comments on merits, and has instead only directed RCom and its lenders to follow due procedure, and file an appeal before the National Company Law Appellate Tribunal (NCLAT), instead of directly approaching the SC.
As legally advised, and based on the order of the SC as above, RCom is confident of securing appropriate relief from the NCLAT to enable sales of tower and fibre assets to also be completed at the earliest. The claim of the minority investors (which is fully disputed by RCom) can, in any case, be a maximum of approximately Rs 200 - 300 crore from the sales proceeds. RCom intends filing the aforesaid appeal before NCLAT on Friday, 6 April 2018, with a request for expeditious disposal of the same.
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Based on these developments, RCom is now confident of achieving overall debt reduction of approximately Rs 25000 crore within the next few weeks, from the first phase of the asset monetisation programme as detailed in the media release issued on 26 December 2017.
On a consolidated basis, RCom reported net loss of Rs 113 crore in Q3 December 2017 as against net loss of Rs 488 crore in Q3 December 2016. Net sales declined 31.70% to Rs 1144 crore in Q3 December 2017 over Q3 December 2016.
RCom has established a pan-India, next-generation, digital network that is capable of supporting best-of-class services spanning the entire communications value chain.
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