Hela December 7, 2019

Representative Image

Shares of Reliance Communications extended the winning streak for the 14th consecutive session on December 6, ending the day 4.12 percent higher at Rs 1.01 on BSE.

In the last 14 sessions, the stock has gained 77.2 percent. However, in the calendar year 2019, the stock has lost 93 percent of its market value.

Reliance Communications has put all its assets for sale, which include spectrum holding of 122 MHz that the company before insolvency proceedings estimated to be around Rs 14,000 crore, tower business worth Rs 7,000 crore, optical fibre network worth Rs 3,000 crore and data centres worth Rs 4,000 crore.

According to an NCLT order, the resolution professional (RP) has to complete the process by January 10, 2020.

RCom, in the past, has tried to sell assets to various companies, including Reliance Jio, to clear debts but the deals did not crystallise. Reliance Jio cancelled the agreement to buy RCom assets as it did not want to bear the previous liabilities of the debt-ridden firm.

Later, the insolvency proceeding against RCom was started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues.

RCom Chairman Anil Ambani tendered his resignation after the company had posted a consolidated loss of Rs 30,142 crore for July-September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues.

This was the second-highest loss posted by any Indian company till date.

The CoC has, however, rejected Ambani’s resignation and asked to cooperate in insolvency proceedings.

As per media reports, Reliance Jio, Bharti Airtel, Varde Capital and UV Asset Reconstruction Company are likely among the bidders for the assets of debt-ridden Reliance Communications and its subsidiaries.