Mon Oct 07 09:52:44 UTC 2024: ## Reliance Communications Shares Surge Despite Company’s Financial Struggles
**Mumbai, India** – Shares of Reliance Communications (RCom), the company controlled by Anil Ambani, have surged significantly despite the company facing bankruptcy proceedings. On Monday, RCom shares saw a 5% upper circuit, reaching an intra-day high of Rs 2.36. This comes after a remarkable 21% jump in the past five days, marking a 12% increase over the last month. However, the stock has experienced a steep decline in the long term, plummeting 99% from its peak of Rs 760 in December 2007.
The recent surge in RCom shares can be attributed to the company’s disclosure of its debt status to the stock market on Saturday. According to the filing, RCom had a total debt of ₹40,413 crore as of September 30, including both short and long-term debt. However, the amount excludes interest accrued on loans from banks and financial institutions, totaling ₹27,867 crore, and interest on non-convertible debentures (NCDs) amounting to ₹3,151 crore.
The company clarified that it is currently undergoing corporate insolvency resolution proceedings under the provisions of the Insolvency and Bankruptcy Code, 2016. This implies that the resolution of RCom’s debt will be handled according to the code’s provisions.
It’s worth noting that Anil Ambani recently managed to reduce Reliance Power’s debt.
Anil Ambani, once the world’s sixth richest person in 2008 with an estimated net worth of $42 billion, saw his company, RCom, once India’s second-largest telecom operator, fall into financial distress. The rise of Mukesh Ambani’s rival company, Reliance Jio, significantly impacted RCom’s financial standing, leading to a substantial debt burden.
First Piper 