Two Anil Ambani Group stocks — which were trading for less than ₹1 — are buzzing again

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Two Anil Ambani Group stocks — which were trading for less than ₹1 — are buzzing again
  • The share prices of Anil Ambani’s Reliance Communication and Reliance Naval and Engineering (RNEL) seem to be rebounding as the deadline to bid for its assets nears.
  • The shares of Reliance Naval and Engineering (RNEL), which was as low as ₹0.75 — shot up by 10 times at ₹7.70 in a span of 11 weeks.
  • While Reliance Communications’ share prices, which closed down at ₹0.57 on November 18, also climbed over 4% on November 26.
  • This comes as Airtel and Reliance Jio bids to purchase the assets of the company and its two subsidiaries.

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The share prices of Anil Ambani’s Reliance Communication and Reliance Naval and Engineering (RNEL) seem to be rebounding — after taking hit for most part of the year.

The shares of Reliance Naval and Engineering (RNEL), which was as low as 75 paise— shot up by 10 times at ₹7.7 in 11 weeks. Its market capitalisation stood at ₹565 crore.

Last financial year, RNEL recorded a net loss of ₹10,927 crore, while its revenue was at ₹180 crore. RNEL’s subsidiary Reliance Marine — filed bankruptcy in August after its debt swelled to ₹1,000 crore.


But this is not the only ADA group share that is gaining. The stock of Reliance Communications rose gained by 26% in the last eight days, according to BSE data.

The stock has been taking a beating since it went bankrupt in May with massive unpaid dues of around ₹46,000 crore. But as the insolvency process is going on, it received bids from two players — Bharti Airtel and Reliance Jio bids to purchase its assets.
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All of RCom’s assets including spectrum, towers, fibre and data centre and real estate are up for sale. It is reported estimated to be ₹33,000 crore, reported Economic Times. But it might fall short of lender claims that came in at around ₹49,000 crore in August. The National Company Law Tribunal is expected to complete the process by 10 January, 2020.

RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but did not crystallise. Its chairman Anil Ambani resigned after the company registered a consolidated loss of ₹30,142 crore for July-September 2019. This was the second highest loss posted by any Indian corporate till date. However, the shareholders rejected his resignation.

See also:
Airtel, RIL, 3 others may submit bids for RCom assets on Monday
RCom lenders reject resignation of Anil Ambani, 4 other directors
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RCom shares rally 6 pc to hit upper circuit on asset sale buzz
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