Shares of Reliance Communications (RCom) rallied as much as 15 percent in early trade after the company agreed a new debt repayment plan with lenders, including a pledge to raise up to Rs 17,000 crore (USD 2.6 billion) by selling assets such as mobile towers. Around Rs 90 lakh shares of RCom were traded in nine premarket deals.
The company would repay lenders an additional Rs 10,000 crore through the sale and commercial development of its real estate near Mumbai and in eight other cities. The announcement comes after the unraveling of its previous debt repayment plan, which had hinged on merging its mobile operations with rival Aircel and selling a 51 percent stake in its tower arm to Canada’s Brookfield. RCom is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the strategic debt restructuring process as per applicable RBI guidelines.