Reliance Anil Ambani group stocks tumble amid heavy selling; RCom falls to below Rs 10.

Reliance Anil Ambani group stocks tumble amid heavy selling; RCom falls to below Rs 10.

Amid the heavy trading volumes on Wednesday, most shares of the Reliance ADAG tumbled heavily in the late afternoon trade on Wednesday.

Most shares of the Reliance ADAG tumbled sharply amid heavy trading volumes on Wednesday in the late afternoon trade, with the Anil Ambani group’s Reliance Communications shares falling to single digits for the first time ever. The other group stocks include which fell include Reliance Power, Reliance Infrastructure, Reliance Naval and Engineering, Reliance Capital and Reliance Nippon Life Asset Management. The telecom arm of ADAG, Reliance Communications is reeling under the immense burden of debt. Shares of Reliance Communications fell about 17.24% to hit an all-new record low of Rs 9.6 and finally settled at Rs 10.30. Amid heavy volumes, more than 9.4 crore shares exchanged hands on both BSE and NSE with about 8.3 crore shares on NSE alone.

The stocks of Reliance Infrastructure slipped 15% at the day’s low and finally closed at Rs 418.95; Reliance Capital shed 15% intraday before closing at Rs 422; Reliance Naval and Engineering dropped 11.22% at the day’s low and ended at Rs 44, while Reliance Nippon Life Asset Management tripped 9.23% intraday before recovering a little to end at Rs 256.5.

RCom has also failed on US dollar bonds which is the first default by an Indian company in 15 months. “Reliance Communications Ltd., the Indian mobile phone operator controlled by billionaire Anil Ambani, failed to pay a coupon on its 2020 dollar notes before the expiry of a grace period on Monday,” Bloomberg reported citing an unidentified person familiar with the matter.

Reliance Communications shares are on a continuous downside from this week. The Anil Ambani led telecom company posted a net loss for the fourth straight quarter. Reliance Communications is struggling with a heavy debt burden amid the ongoing tariff wars in the telecom sector which has eaten into margins. Recently on Saturday, RCom had reported a consolidated net loss of Rs 2,709 crore for the July-September period versus a profit of Rs 62 crore in the same quarter a year ago.

RCom is reeling under a total debt of Rs 45,000 crore. Of this, Rs 25,000 crore is domestic debt and remaining Rs 20,000 crore is in the form of foreign loans and bonds. RCom has classified Rs 22,550 crore of borrowings as non-current liabilities. With a net of debt of Rs 44,300 crore as of end-March, RCom is the most leveraged among listed Indian telecom companies. The telecom company has missed interest payments on two outstanding domestic non-convertible debentures.

http://www.financialexpress.com/market/reliance-anil-ambani-group-stocks-tumble-amid-heavy-selling-rcom-falls-to-below-rs-10/933862/