RCom surges by 40 per cent on the back of debt-reduction

Breaking all the records, the share price of Anil Ambani-led Reliance Communication surged by over 40 per cent on the bourses in the intraday trade on Tuesday. The company, which was severely debt-ridden, saw a spike in its stock price following its exit from the strategic debt recast and a reduction of Rs. 25,000 crore debts.
 
The company’s overall debt stood at Rs. 45,000 crore as of October 30, 2017, whereas, its total debt has been reduced to Rs. 6,000 crore at present. According to Credit Suisse, the present enterprise value of the new RCom is around Rs. 15,000 crore.
 
The company attained the reduction in its surmounting debt through its asset monetisation programme that included the sale of spectrum, towers, fibe, mobile switching nodes and real estate.
 
On Tuesday, the stock surged by 41.02 per cent to hit its intraday high of Rs. 23 per share. The stock also recorded an intraday low of Rs. 16.50 per share on BSE. The stock also recorded a spurt in volume by 5.15 times against its average volume. The stock breached its upper circuit of Rs. 19.57 per share on BSE on Tuesday. It had hit its 52-week high of Rs. 41 per share on April 6, 2017 and its 52-week low of Rs. 9.60 per share on November 15, 2017, respectively.