Not surprising at all; today morning almost all ADAG stocks are up among the gainers on the BSE. The pack is led by Rcom, which hit the 10% UC at Rs.44.40; Reliance Infra rose 8.5% to Rs.145.80 and Reliance Power too rose almost 8.5% to Rs.11.95.
The ADAG stocks have surged after big brother, Mukesh Ambani, stepped up and paid off Rs.550 crore or $80 million which Rcom owed to Ericsson AB for past maintenance services provided to his group. Anil Ambani, thanked his brother Mukesh and sister-in-law for this gesture; elder brother helped prevent Anil from going to jail.
Rcom also stated that two companies, Rcom and Jio, have mutually agreed to terminate the pact as it is committed to a comprehensive resolution of overall debt through India’s National Company Law Tribunal.
If one may recollect, in Dec’17, Mukesh Ambani had made a pact with Rcom to acquire its towers, spectrum, optical fibre network and other wireless assets for Rs.18,000 crore, which essentially would have helped Rcom tide over some of his debt woes. Anil Ambani’s Rcom owes Rs.45,000 crore to some 35 lenders. But DoT insisted that Jio takeover Rcom’s arrears too, which it refused and the NoC from DoT never came. Thus the deal never happened and today, it was officially declared as null and void.
The markets are happy that the big brother stepped up and there is some faith that if needed, the richest man will bail out his younger brother again. And it’s a huge relief that the ongoing Ericsson issue is finally settled.