RCom shares end nearly 4% lower on insolvency case buzz

BSE had sought clarification from Reliance Communications after market hours on Monday with respect to news that China Development Bank has filed an insolvency case against it.

New Delhi: Shares of Reliance Communications on Tuesday ended nearly 4 percent lower amid reports that China Development Bank has filed an insolvency case against the telecom firm, which the company has denied.

Trimming most of its early losses, the stock ended the day at Rs 12.90, down 3.37 percent on BSE. During the day, it slipped 8.61 percent to Rs 12.20.

At NSE, shares of the company went down 3.74 percent to close at Rs 12.85.

In terms of equity volume, 67.51 lakh shares of the company were traded on BSE and over 7 crore shares changed hands at NSE during the day.

BSE had sought clarification from Reliance Communications after market hours yesterday with respect to news that China Development Bank has filed an insolvency case against it.

In a clarification to BSE, Reliance Communications spokesperson yesterday said: "The company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media."

However, in the interest of all stakeholders, the spokesperson said: "The company is engaged through the JLF (joint lenders forum) with all its lenders for a successful resolution of the SDR process. China Development Bank has also been actively participating in the JLF."

The company is therefore, surprised by the untimely and premature action of China Development Bank of filing an application at NCLT, the spokesperson added.

The company continues to remain engaged with all lenders including China Development Bank and is confident and committed to a full resolution with the support of all the lenders.