RCom shares soar 10 per cent after debt repayment plan
Reliance Communications on Monday said it will look to repay Rs 170 billion of loans by selling assets such as mobile towers.
Mumbai: Shares in embattled wireless carrier Reliance Communications Ltd rose more than 10 per cent in early trade on Tuesday after the company presented a new debt repayment plan to its lenders.
The company, with USD 6.8 billion of net debt as of last March, said it will look to repay Rs 170 billion ($2.62 billion) of loans by selling assets such as mobile towers. It also pledged to repay another Rs 100 billion from sale or commercial development of its real estate assets.
Under a central bank debt restructuring plan, its lenders will also swap Rs 70 billion of the loans to take a 51 per cent stake in the company commonly called as RCom.
The stock was up 13 per cent at 0352 GMT, compared with a 0.2 per cent fall in the broader NSE Nifty.
The stock has tumbled this year, hitting a series of record lows on worries about whether it can pay back its debt.