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RCom shares zoom 10%; hit upper circuit after payment to Ericsson

The scrip jumped 10 per cent to Rs 4.40, its upper circuit limit, on the BSE.

RCom shares zoom 10%; hit upper circuit after payment to Ericsson

New Delhi: Shares of Reliance Communications zoomed 10 per cent Tuesday after the company cleared dues of Swedish service provider Ericsson at the eleventh hour.

The scrip jumped 10 per cent to Rs 4.40, its upper circuit limit, on the BSE.

At the NSE also, shares rose by 10 per cent to Rs 4.40.

The company's market valuation rose by Rs 110.83 crore to Rs 1,216.83 crore on the BSE.

Buying was also seen in other group shares, with Reliance Naval and Engineering gaining 4.99 per cent, Reliance Capital rising 4.80 per cent, Reliance Home Finance surging 4.49 per cent, Reliance Infrastructure rising 2.12 per cent and Reliance Power gaining 1.63 per cent on the BSE.

Embattled billionaire Anil Ambani Monday warded off a possible jail term as RCom cleared dues of Ericsson with the money received from elder brother Mukesh and his wife Nita, whom he thanked for standing by him in trying times and extending "timely support".

Anil's heavily debt-laden Reliance Communications made a Rs 550 crore payment, including interest, to Ericsson just a day before expiry of the deadline set by the Supreme Court to clear dues or face a three-month jail term.

In a statement, RCom said the payment of Rs 550 crore dues to Ericsson, including interest dues, has been made in compliance with the Supreme Court judgement.