Volatile day for Rcom Investors

Debt-ridden Reliance Communications gained nearly 30 per cent in early trade on Friday only to wipe-off its gains and fall further by 18 per cent over uncertainty on settling the dispute with Ericsson.

Ericsson had signed a 7-year deal in 2014 to operate and manage RCom's telecom networks and is now seeking Rs. 11.55 billion from the company. Earlier this week, India's bankruptcy court admitted an insolvency plea filed by Ericsson against RCom, potentially derailing RCom’s plans to sell assets to Reliance Jio to cut debt.

On Thursday, the stocks jumped as much as 70 per cent over the talks to settle the dispute. However, according to the latest media reports, the deal with the Swedish gear-maker looks unlikely as for now.

At 14:58 hours, Reliance Communications was trading at Rs. 16.20 per share, down Rs. 0.20 or 1.22 per cent on NSE. The scrip opened at Rs. 18 and touched an intraday high of Rs. 21.30 per share on NSE. The scrip has a 52-week high of Rs. 40.15 and a 52-week low of Rs. 9.60 per share on NSE. The stock attracted a trading volume of 75,49,39,075 shares on NSE.