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Reliance Communications share price slips over 3% on Anil Ambani's exit, dismal Q2 results

Weighed down by the development, RCom share price declined over 3 per cent in opening trade to touch an all-time low of Rs 0.57 apiece against previous closing price of Rs 0.59

twitter-logo BusinessToday.In   New Delhi     Last Updated: November 18, 2019  | 11:03 IST
Reliance Communications share price slips over 3% on Anil Ambani's exit, dismal Q2 results
RCom in a filing to the exchanges said that Anil Ambani, Chhaya Virani, Ryna Karani, Manjari Kacker and Suresh Rangachar have also tendered their resignation from the office of directors

Shares of debt-laden Reliance Communications fell more than 3 per cent in the early trade to hit its fresh 52-week low of Rs 0.57 on the Bombay Stock Exchange (BSE) after the company's chairman Anil Ambani resigned as director of the company.

Reliance Communications (RCom) in a filing to the exchanges said that Anil Ambani, Chhaya Virani, Ryna Karani, Manjari Kacker and Suresh Rangachar have also tendered their resignation from the office of directors.

Earlier on October 4, Manikantan V had tendered his resignation as director and chief financial officer (CFO) of the bankrupt company, which is pending for approval before the committee of creditors (COC).

The announcement came a day after RCom, which is going through insolvency process, reported India's second biggest loss at Rs 30,142 crore during September quarter due to provisioning for liabilities after the Supreme Court ruling on statutory dues. During Q2FY20, the company set provisions of Rs 28,314 crore following the Supreme Court verdict on payment of AGR dues to the government.

Also Read: Anil Ambani resigns as Reliance Communications' director

Weighed down by the development, RCom share price declined over 3 per cent in opening trade to touch an all-time low of Rs 0.57 apiece against previous closing price of Rs 0.59. At the time of reporting, the scrip rebounded 3.39 per cent to trade at 0.61 apiece on the BSE.

In a similar trend, shares of Reliance Communications were trading flat at Rs 0.60 on the National Stock Exchange (NSE).

Also Read: Govt serious about addressing concerns of crisis-ridden telecom sector, says FM Nirmala Sitharaman

Revenue from operations slipped to Rs 302 crore during the July-September quarter of this fiscal from Rs 977 crore in the corresponding period of 2018-19, RCom said in the regulatory filing.

RCom and its subsidiaries did not provide interest of Rs 1,210 crore and foreign exchange variation of Rs 458 crore, the company said in the exchange filing.

Also Read: AGR impact: Banks fear telcos' loan defaults worth Rs 1.15 lakh crore

"Had the company provided interest and foreign exchange variation, the loss would have been higher by Rs 1,668 crore...for the quarter," RCom said.

Last week, telecom firm Vodafone Idea posted the country's biggest loss of Rs 50,921 crore for the September quarter, impacted by adverse ruling in average gross revenue (AGR) case. The Department of Telecommunications (DoT) has reportedly started the initial process of claiming its AGR dues from telcos, directing them to pay within three months.

Edited by Chitranjan Kumar

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