Shares of Reliance Communications jumped as much as 13.5 per cent on Thursday as the National Company Law Tribunal has adjourned the hearing of insolvency petitions filed against Reliance Communications to early next month.
After opening strong at Rs 18.65 against the previous close of Rs 17.79, the scrip touched an intraday high of Rs 19.60 and a low of Rs 17.06 on the BSE. In terms of equity volume, 504.46 lakh shares exchanged hands in the evening trade.
The stock ended higher by 4.05 per cent at Rs 17.97 on the BSE. On Wednesday, the stock had surged nearly 36 per cent, in an otherwise sluggish broader market.
RCom is facing insolvency proceedings filed by lenders such as China Development Bank and Ericsson India before NCLT for recovery of dues.
The NCLT will hear the insolvency petitions filed by the China Development Bank and Ericsson against Reliance Communications on January 5. Earlier last month, China Development Bank had filed an insolvency case against the telecom company. CDB, a lender to RCom, has filed the suit with the NCLT in Mumbai under the Insolvency and Bankruptcy Code (IBC).
In September this year, Ericsson had filed an insolvency petition against RCom with the NCLT, as the tribunal began hearing of the company’s merger with Aircel. The company had filed the petition at the Tribunal’s Mumbai Bench seeking recovery of Rs. 491.41 crore.
Ericsson has also filed similar petitions against RCom subsidiaries Reliance Infratel and Reliance Telecom for recovery of Rs. 534.75 crore and Rs. 129.34 crore, respectively, RCom had said in a regulatory filing.