Rcom went up over 6% to Rs.12.54, registering volumes of around 35 lakh shares. It is among the top five gainers on the BSE currently.
A few minutes after closing bell yesterday, the company announced that it has been granted relief by the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) by staying the demand of Bank Guarantee (BG) of Rs. 2,900 Crore by the Department of Telecommunications (DoT).
RCOM had challenged the unjustly sought security for the alleged demands by DoT (which are wholly disputed) for Spectrum Usage Charges (SUC). After multiple hearings since 28th August 2018 the TDSAT, vide its interim Order dated 1st October 2018 has stayed the said demand and directed DoT to expeditiously grant its approval for trading of the spectrum.
38 Secured Lenders of RCOM Group have already approved the sale of the above spectrum, and the proceeds thereof will be used for making payments to Ericsson India Private Limited and to RITL Minority Investors, as per settlement terms.
Rcom said that it will be able to complete spectrum trading without bank guarantee of Rs.2900 crore as demanded by DoT. Rcom has said that it will receive Rs.975 from sale of spectrum and of this, Rcom will pay Ericsson Rs.550 crore and RTIL minority investors Rs.230 crore. This has already been approved by the lenders.