Shares of Anil Ambani's Reliance Communications (RCom) extended losing momentum for the sixth consecutive session on Wednesday after media report suggested that the lenders of the company claimed to have the first right over income tax (I-T) refunds.
Extending losses for the sixth straight day, shares of debt-ridden telecom company declined as much as 6 per cent in intra-day trade to hit all-time low of Rs 4.82, in otherwise strong market.
In a similar trend, shares of the Anil Ambani's Reliance Group company plunged 4.90 per cent to trade at Rs 4.85 apiece on the National Stock Exchange.
Lenders of RCom, led by State Bank of India, on Tuesday contended before the National Company Law Appellate Tribunal (NCLAT) that they have the first right over Rs 260 crore, which the cash-strapped company has received as the income tax refund.
The SBI along with other members of Joint Lenders' Forum (JLF) said that as per the RBI guidelines, they have the right over the retention and trust account in which the refunds have been deposited, PTI reported.
In past six trading days, the stock of RCom declined as much as 20 per cent from Rs 6.07 apiece on March 6, 2019, on the BSE.
On Monday, NCLAT had pulled up the lenders for giving a 'false impression' to monetise Rs 37,000 crore from asset sales of the telecom company to Reliance Jio. The NCLAT was hearing RCom's plea, which has approached the appellate tribunal, seeking waiver over the moratorium placed by it on February 4.
On February 1, Reliance Communications had filed for bankruptcy to resolve its debt position. As of March 2017, the company owed banks USD 7 billion. The decision has come after the telco failed to take necessary approvals from lenders and DoT to conclude its deal with Reliance Jio.
Edited by Chitranjan Kumar