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After being severely beaten down, the stock of Anil Ambani-led Reliance Communications (RCom) has been on a roll for the past few weeks. This was on speculation that the company was making headway on plans to cut down its massive debt of about ₹45,000 crore. Last week, concrete progress on this front saw the stock surge 45 per cent.
On Tuesday, the company announced its exit from strategic debt restructuring (SDR) and a new debt cut plan with zero equity conversion and zero write-offs by lenders and bondholders that would reduce debt by about ₹25,000 crore.
This was followed by the announcement on Thursday of Mukesh Ambani-controlled Reliance Jio (RJio) emerging as the highest bidder to acquire most of the assets put on the block by RCom.
RJio will acquire RCom’s spectrum, telecom towers, fibre optic and other telecom infrastructure assets. The sale is expected to be closed by March. The companies did not disclose the deal value.
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