Reliance Communications shares extend rally, zoom over 25% on revival plan announcement

New Delhi: Shares of Reliance Communications on Wednesday extended their previous session’s rally, soaring over 25 percent, as investor sentiment remained buoyant following a revival plan announcement.

The stock after a positive opening, further jumped 25.41 percent to Rs 26.75 on BSE.

At NSE, shares of the company soared 24.88 percent to Rs 26.85.

The stock had gained nearly 32 percent in the previous session also.

Anil Ambani on Tuesday claimed that his beleaguered Reliance Communications has negotiated a new deal with the lenders under which nearly Rs 40,000 crore will be raised through asset sales, averting an imminent takeover by the 35 local and foreign banks.

The revival plan, which also has the backing of the Chinese lender which had dragged it to the National Company Law Tribunal for defaulting on $1.8 billion loan, involves sale of RCom’s residual spectrum, towers and realty assets, including the 125-acre DAKC - the operational headquarters of the group - and also a possible minority stake sale to a strategic investor, Ambani told reporters in Mumbai.

Through the deal, brokered ahead of the 28 December deadline when banks would have taken majority ownership, RCom exits strategic debt restructuring (SDR) and it also involves zero write-offs to lenders, Ambani claimed.