RCom shares in heavy demand; zoom over 16 per cent

New Delhi: Shares of Reliance Communications on Tuesday saw heavy buying, soaring over 16 per cent, after the company made a debt resolution plan to its lenders.

The stock after a positive opening further jumped 15.92 per cent to Rs 18.20 on BSE. At NSE, shares of the company zoomed 16.19 per cent to Rs 18.30.

Anil Ambani-led Reliance Communications, which plans to shut mobile telephony business by November-end, yesterday said lenders will convert part of their debt to equity to gain 51 per cent control of the company.

The firm will sell telecom tower and real estate businesses to pay off Rs 27,000 crore out of Rs 45,000 crore of debt on its book, RCom said in a statement.

"Debt of Rs 7,000 crore is proposed to be converted into 51 per cent of the company's equity, as per the SDR guidelines of the Reserve Bank of India," it said. RCom said it has made a comprehensive "debt resolution plan to its domestic and foreign lenders".

Under the plan, lenders would not have to write off any of their loans, it said.

The 'no-loan write-off' plan involves payment of up to Rs 17,000 crore debt out of proceeds of monetisation of spectrum, tower and fibre assets.