RCom shares, bond continue to tumble amid debt concerns

Shares and bonds of the Anil Ambani-led Reliance Communications (RCom) continued to tumble on Monday, amid concern around mounting debt and ability to service the loans, given the competitive pressure in telecom. Shares of RCom dropped as much as 24 per cent to hit an intra-day low of Rs 19.7. It recovered marginally to end at Rs 20.5, down Rs 5.3 or 20.5 per cent on the BSE.The company’s $300-million bonds, due in 2020, dropped 14 per cent to a record low, according to prices compiled by Bloomberg.Shares of four other Anil Ambani-controlled companies fell between six and 11 per cent, for the same reason. Data compiled by Capitaline estimates the five companies’ debt dues at a combined Rs 125,000 crore as of end-March. Shares of group companies have come under pressure in the past two weeks after rating agencies ICRA and CRISIL downgraded their scores on these. While shares of Rcom have tumbled 33 per cent since May 19, Reliance Infra and Reliance Capital are down 21 per cent and 18 ..

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