The stock did manage to recover from the low during the afternoon trade but later gave up all gains as the trade progressed.
New Delhi: Shares of Reliance Communications today extended losses and ended over 2 per cent lower on concerns over the company's debt repayment capability and disappointing fourth quarter earnings.
The stock slipped 2.20 per cent to end at Rs 20.05 on the BSE. During the day, it dived 7.56 per cent to Rs 18.95 – its 52-week low. The stock did manage to recover from the low during the afternoon trade, rising 9.26 per cent but later gave up all the gains as the trade progressed.
On the NSE, shares of the company fell by 2.43 per cent to close at Rs 20. On the volume front, 206.93 lakh shares of the company were traded on the BSE and over 13 crore shares changed hands on the NSE during the day.
Reliance Communications had witnessed heavy selling yesterday also, plunging over 20 per cent. The company's market valuation has declined by Rs 1,430.6 crore to Rs 4,990.40 crore in two days. Debt laden telecom operator Reliance Communications today said it has told lenders that it would repay Rs 25,000 crore before September 30 this year, expected to be generated from two business deals.
"RCom has formally advised all its lenders that it will be making repayment of an aggregate amount of Rs 25,000 crore from the proceeds of these two transactions, on or before September 30, 2017," RCom said in a statement.
RCom's net debt stood at a whopping Rs 44,345.30 crore as on March 31 this year. The assertion comes at a time when there are growing concerns over the company's debt repayment capability. There have been reports saying that the company defaulted on its loan obligations with more than 10 local banks. RCom posted a loss of Rs 948 crore for the fourth quarter ended March 2017 compared to a net profit of Rs 79 crore in the corresponding period of the previous year.