Reliance Communications shares surged nearly 18 percent intraday Monday after the subsidiary submitted corporate guarantee to Department of Telecommunications.
“As per the order dated November 30 of the Supreme Court, Reliance Realty, a 100 percent subsidiary of RCom has submitted the corporate guarantee of Rs 1,400 crore to the Department of Telecommunications (DoT),” the telecom operator said in its filing.
As per the said order, DoT is going to approve the spectrum trading within this week.
RCom said the spectrum trading transaction would now be completed and proceeds would clear the dues of Ericsson and minority investors of Reliance Infratel (RITL). “RCom’s asset monetisation proceeds are as per plan.”
The Supreme Court, on November 30, ordered the Department of Telecommunications to grant a no-objection to Reliance Communications for spectrum trading within 7 days.
The court had upheld the earlier order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and said no bank guarantee is now required.
At 12:38 hours IST, the stock was quoting at Rs 16.46, up Rs 2.19, or 15.35 percent on the BSE.
courtsey By – https://www.moneycontrol.com/news/buzzing-stocks/reliance-communications-jumps-18paying-rs-1400-cr-corporate-guarantee-to-dot-via-arm_11796241.html