RCom hits new low

RCom is strongly perched as the top loser on the BSE since morning. It hit  a new 52-week low today at Rs.17.45.

The stock tanked, reacting to its announcement on Sunday that it has called off the planned merger of its wireless unit with Aircel. It cited, “regulatory delays and opposition from some creditors” as the reason for this fallout. This was expected given the mound of debt it is sitting on.

Its debt stands at around Rs.45,000 crore and given the pressure on earnings coming in due to Reliance Jio, currently the prospects do not look great.

RCom said it is now looking at alternative ways to reduce its debt, including sale of real estate assets and “optimization of spectrum.”