Investors optimistic on RCom; shares gain 108% in 3 days
Investors optimistic on RCom; shares gain 108% in 3 days
Anil Ambani's Reliance Communication (RCom) emerged among the top performers on stock exchanges today. The company has struggled a lot to reach at this level.
After recording day's high of Rs 33.95 on the BSE, the stock price of RCom was finished at Rs 31.44 per piece higher by 9.39%. This would be the company's third consecutive surge this week.
Last week RCom ended near Rs 16-mark, but there was an optimism among investors, as the company's stock surged to Rs 21 per piece on December 26, and further to Rs 28.74 per piece on December 27.
With this upturn, RCom has now gained over 108% from December 26, 2017 to till date.
If we compare as an year-on-year (YoY) of RCom, the company's stocks have not really done great. But on a positive note, it has managed to reach at the same level it was a year ago.
RCom was trading near Rs 33-mark a year ago on the same day.
The reason behind not achieving much more than that was its financial losses, higher net debt and credit ratings downgrades.
On December 26, 2017, Anil D. Ambani, Chairman of Reliance Communications Ltd., said, “I am delighted with the comprehensive resolution for the benefit of all stakeholders of RCOM. What we have achieved, in the face of extraordinary challenges, is truly historic and unprecedented in Indian corporate history."
All transactions are expected to be closed in a phased manner between January and March 2018. Upon completion of all transactions as announced, the balance debt in RCom is expected to be Rs 6,000 crore only, representing reduction of over 85% of total debt.
RCom's debt stands at Rs 45,000 crore as on September 2017.
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