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RCom stock up 10% as company reaches agreement with lenders
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SME Times News Bureau | 19 Feb, 2019
The Reliance Communication (RCom) stock rose sharply by over 11 per cent
on Monday, a day after the Anil Ambani-led Reliance Group reached an
understanding by which the lenders will refrain from selling stock
pledged by the promoters till September 30, 2019.
During the late
afternoon session of the trade, shares of RCom traded 11.82 per cent
higher at Rs 6.15 per share from its previous close of 5.50.
Reliance
group companies on Sunday said it had reached an in-principle
"standstill understanding" with more than 90 per cent of its lenders.
According
to the understanding, 90 per cent of its lenders will not enforce
security and will not sell any of the shares pledged by the promoters
till September 30, 2019, on account of lower collateral cover or reduced
margin caused by recent unprecedented fall in share prices.
The
Anil Ambani Group will pay the principal and interest to the lenders as
per the scheduled due dates specified in the loan agreements, it said.
"The
Reliance Group has also informed the lenders that it has appointed
investment bankers to place a part of its direct 30 per cent
shareholding in Reliance Power Ltd to target institutional investors.
"Roadshows by the investment bankers will commence during the next week," the statement said.
Value
of the promoter stake in Reliance Power, before the unprecedented fall
in share prices, was more than Rs 2,500 crore and would clear more than
65 per cent of the total promoter borrowings, it added.
Earlier
this month, the Reliance Group said a few non-banking finance companies
(NBFCs), substantially L&T Finance and certain entities of Edelweiss
Group, had invoked the pledge on listed shares of the Group and made
open market sales of the value of approximately Rs 400 crore during
February 4-7.
The market capitalisation of the three companies were badly impacted due to open market sales.
Reliance
Infrastructure Ltd holds 40 per cent equity in Reliance Power and "even
after placement of its holding by the promoters, majority stake and
control remains with Anil Ambani Group", the statement said.
"Unlike
Zee/Essel Group promoters - where there are about 25 lenders -- the
Anil Ambani Group has only nine lenders at promoter level. Some of the
key lenders are Templeton MF, DHFL Primeamerica MF, Indiabulls MF,
IndusInd Bank and Yes Bank.
"Also, unlike Zee/Essel Group
promoters -- where Indian Mutual funds have lent Rs 7,000 crore -- the
Anil Ambani Group has only Rs 1,000 crore borrowings from Indian mutual
funds," it added.
According to Reliance, Franklin Templeton
comprises 90 per cent of the mutual fund (MF) exposure and has publicly
supported the Anil Ambani Group promoters, saying: "In our view, the
transaction remains adequately covered, and we continue to engage with
ADA Group to decide the future course of action.
"Primeamerica MF
and Indiabulls MF, with combined exposure less than Rs 100 crore, are
being paid off in full before March 31, 2019," the statement said.
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RCOM
RCOM shares | Wed Feb 20 05:11:38 2019
Is the right time to sell the shares or hold
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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