Shares of Reliance Communications (RCom) today ended nearly 11 per cent down on the bourses, eroding as much as Rs 523 crore from the market capitalisation of the company.
Shares of the company opened on a weak note at Rs 18.70 on the BSE, then lost further ground and fell to an intra-day low of Rs 16.75.
At the end of today's trading session the stock settled at Rs 17.10, down 10.94 per cent over its previous close on BSE.
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Following the downtrend in the stock, the market capitalisation of the company fell by Rs 523 crore to Rs 4,256.16 crore.
On the National Stock Exchange similar trend was seen where the stock opened at Rs 18.65, then slumped to an intra- day low of Rs 16.75 and finally settled at Rs 17.15, down 10.68 per cent.
The significant decline in the stock was largely a knee jerk reaction post the collapse of the Aircel merger deal.
Reliance Communications, on October 1, had called off merger talks with Aircel, citing "legal and regulatory" delays.
RCom and Aircel had signed binding agreements in September 2016 for the merger of mobile business.
RCom, which is reeling under a debt of about Rs 46,000 crore, has outlined an alternative plan for debt reduction by selling real estate as well as tower and fibre business.
"Legal and regulatory uncertainties, and various interventions by vested interests have caused inordinate delays in receipt of relevant approvals for the proposed transaction," RCom had said in a statement.
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