Anil Ambani group firms' stocks drop on debt concerns

The share fell 7.7% on Wednesday, extending this week's fall to 15%

Shares of Anil Ambani group companies dropped between five and eight per cent on Wednesday. The sell-off was on concerns of whether the group would be able to repay the high debt to banks. The fear was triggered after Reliance Communications’ (RCom’s) overseas bond plunged 30 per cent after a cut in credit rating and reports of delay in interest payment.

According to Bloomberg, the company’s $300 million 6.5 per cent note, due 2020, has plunged 36 cents to a dollar so far this week. The share fell 7.7 per cent on Wednesday, extending this week’s fall to 15 per cent.