The Reliance Communications stock was trading lower today after the National Company Law Tribunal (NCLT) accepted an insolvency petition filed by Swedish communications equipment major Ericsson against the Anil Ambani firm and two of its subsidiaries seeking to recover Rs 1,150 crore. At 12:21 pm, the stock was down 17.67% to 10.25 level on BSE. It opened at Rs 11.25 today after closing at 12.45 in yesterday's trade. The stock fell up to 20.08% in trade today and hit an intra day low of 9.95 level on BSE.
The stock is 4.48% away from 52 week low of 9.60 which it hit on November 15, 2017. The stock is down 68.85% during the last one year. It has lost 72.39% since the beginning of this year.
The stock has been highly volatile with an intra day volatility of 5.78% (calculated on the basis of weighted average price).
It has fallen every month during the last six months and has generated 35.37% returns during the period. During the last one month, the stock has fallen 52.37% against sector return of 5.03%.
The Swedish firm had inked a seven-year deal in 2014 to operate and manage RCom's nationwide telecom network but has not been paid the bill.
Last September, the Swedish firm had filed a petition in the NCLT's Mumbai bench seeking liquidation of the telecom operator to recover Rs 1,150 crore that Reliance Communications owes it.
The tribunal admitted the petition on May 15 which could potentially result in delaying RCom's plans to sell assets to lighten its debt load.
In a statement, the company said, "RCom and two of its subsidiaries--Reliance Telecom and Reliance Infratel-await detailed order from NCLT, allowing the Ericsson application for admitting the companies to debt resolution under the IBC."
RCom owes around Rs 45,000 crore to as many as 31 domestic and international banks, including over Rs 10,000 crore to a Chinese lender. Due to mounting losses, the company began to wind down its mobile operations from last November. It was also not servicing the debt for many quarters before that as it was looking to recast the loans but did not materialise and since then many of its creditors had taken RCom to bankruptcy court.
This has prevented the company from closing sale of its telecom tower business to Anil Ambani's elder brother-run Reliance Industries for over Rs 23,000 crore, apart from monetising other assets including selling its sprawling DAKC premises to the Chinese lender and pares debt.