Billionaire Mukesh Ambani’s prospects for bailing out his younger brother’s phone company are fading after an Indian tribunal put his sibling’s Reliance Communications Ltd. into insolvency proceedings, which prohibit “connected persons” from acquiring assets of delinquent borrowers, Bloomberg said in a report.
Shares of RCom were the biggest gainers among all the listed scrips on NSE on Thursday followed by RNaval. The stock of Anil Ambani-controlled Reliance Communications RCom jumped as high as 76.12% to a day’s top of Rs 17.7 while the stock of Reliance Naval Aand Engineering (RNaval) advanced 41% to a day’s high of Rs 17.7 in the intraday dealings on Thursday. The stock of RCom closed up 65.71% at Rs 17.4 whereas the stock of RNaval rallied 34.12% to settle at Rs 17.1.
Shares of Reliance Communications were hovering near its record low level of Rs 9.6 as on Wednesday, RCom shares closed at Rs 10.05 on NSE and the stock of RNaval was also trading at its all-time low levels after the company’s auditor raised questions over ‘going concern’ of the firm after RNaval net loss for the quarter ended 31 March widened to more than three times.
Extremely high trading volumes were seen on the counters of Reliance Communications and Reliance Naval and Engineering on Thursday as on NSE alone more than 55 crore equity shares of RCom and 8.75 crore equity shares of RNaval exchanged hands, respectively.
Other ADAG shares which also gained in Thursday trade include Reliance Power (up 6.75%); Reliance Capital (up 4.64%) and Reliance Infrastructure (up 3.21%).
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