Shares of RCOM zoomed 35% at Rs. 28.74 after company announced its exit from RBI's SDR framework, with ZERO equity conversion and ZERO loan write-offs for lenders and bond holders. However, the company did not mention any particular name the new investor (s), but sources close to the development said that there would be 50 per cent foreign investors and rest 50 per cent from India.
The resolution plan involves exiting strategic debt restructuring (SDR) and monetising some of the company's assets, including transfer of spectrum liabilities by March 2018.
Detailing the debt resolution plan, the RCom chairman said the process involves asset monetisation in the form of rationalising wireless business, effective from November. "We have completed longstanding merger with SSTL, gaining platinum spectrum for 4G and 5G, which is valid for 16 years", he said.
Ambani, younger brother to Mukesh Ambani - the chairman of Reliance Industries - said the mobile telephony business had changed into a new beast, and that this new beast was something that can not be tamed by just anybody.
RCom managed to remain a significant player in the mobile telecom market despite mounting losses.
RCom has previously tried and failed to cut its debt, including through merging with fellow telecoms operator Aircel and by selling a stake in the firm to Canada's Brookfield. Reliance Telecom, its sister concern which provides GSM services in eight circles including Calcutta and Bengal, has also announced plans to discontinue voice services from Friday (December 29) and focus only on high speed data.
After Tata Teleservices, Sistema and Telenor, RCom is the latest to fade away in the consolidation wave.
Anil Ambani, who warned about the possibility of the emergence of a "monopoly" in Indian telecom three months ago, today said he was hanging up on his consumer telecom business. Its revenue share, which was under 6 per cent in the second quarter of 2016-17, slid to less than 4 per cent by the first quarter of 2017-18.
He also seems to have given up on his plans to offer 4G services to retail customers using RCom's sharing agreement with Reliance Jio.
The development of the DAKC campus will lead to reduction of RCOM's debt by a further ~ Rs 10,000 crore.
Anil Ambani yesterday claimed that his beleaguered Reliance Communications has negotiated a new deal with the lenders under which almost Rs 40,000 crore will be raised through asset sales, averting an imminent takeover by the 35 local and foreign banks.
RCom's assets on sale include its real estate, fibre network, enterprise business, towers and spectrum, reported the business daily. Its real estate assets include Dhirubhai Ambani Knowledge City near Mumbai, and a 1.6-hectare property in New Delhi. This the company expects to bring in around Rs 10,000 crore.