Shares of Reliance Communications (RCom) today ended with nearly 7 per cent gains, a day after NCLAT stayed bankruptcy proceedings against the company after it agreed to pay Rs 550 crore to Ericsson to settle a payment dispute.
The stock surged 19.14 per cent to Rs 20.85 in intra-day trade, but later trimmed most of the early gains to settle at Rs 18.70, up 6.86 per cent on BSE.
At NSE, shares of the company jumped 5.71 per cent to close at Rs 18.50.
On the equity volume front, 383.40 lakh shares of the company were traded on BSE and over 41 crore shares changed hands at NSE during the day.
The order of the National Company Law Appellate Tribunal clears the way for Anil Ambani-led RCom to sell its telecom towers, spectrum and fibre assets to Reliance Jio.
A two-member bench headed by NCLAT Chairman Justice S J Mukhopadhaya directed RCom and its subsidiaries Reliance Infratel and Reliance Telecom to pay Rs 550 crore to Ericsson India in 120 days, failing which it will direct insolvency proceedings against the company.
Meanwhile, in a statement yesterday, RCom said its management has been reinstated by NCLAT's order.
"RCom's management and board of directors have been reinstated vide this order," RCom spokesperson said.
"RCom expects to now complete the sale of its assets within the next few weeks, having removed legal hurdles of cases by minority investors of RITL, and Ericsson, thereby achieving an overall debt reduction of approximately Rs 25,000 crore from the first phase of its asset monetisation programme," he added.
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