The company's shares opened at Rs 23.46 and touched a high and low of Rs 26.66 and Rs 23.46, respectively, in trade so far.
Shares of Reliance Communications rose for the second straight session on Wednesday. The rally came after the company announced its exit from the Reserve Bank of India (RBI)'s Strategic Debt Restructuring (SDR) framework, with zero equity conversion and zero loan write-offs for lenders and bond holders.
Reliance Communications (RCom) on Tuesday announced a new plan to reduce its debt by about Rs 25,000 crore through sale of some of its spectrum, tower and real estate assets.
It will reduce debt by monetising its wireless business and selling land parcels at Dhirubhai Ambani Knowledge City (DAKC). The transactions are expected to close between January-March 2018.
The company's shares opened at Rs 23.46 and touched a high and low of Rs 26.66 and Rs 23.46, respectively, in trade so far.
At 11:18 AM, Sensex was 78.18 points up to trade at 34,088.68, while Nifty was up by 5.90 points to 10,537.85.
The telecom company has been hit hard by competition in the industry post the entry of Reliance Jio, which triggered a consolidation in the sector.
The resolution plan involved an eight-stage asset monetisation process under an oversight committee headed by former RBI deputy governor S S Mundra with members from Telecom Regulatory Authority of India (Trai) and the whole process will be completed in 40 days flat.
The proceeds from the asset monetisation will be used only to pay back the lenders, including China Development Bank with whom the company sealed an out-of-court settlement in Beijing.
The debt resolution also involves a part transfer of spectrum installments, Ambani said.
The development came a month after RCom was hit by an insolvency petition from China Development Bank, its largest single creditor.
After completion of all transactions, the balance debt in RCom is expected to be around Rs 6,000 crore only, representing a reduction of over 85% of total debt.
Under the SDR agreed in June this year, lenders were to convert at least Rs 7,000 crore debt into a majority equity holding, for which the deadline was December 31.
RCom will also form an SPV for its real estate assets under which it will develop 20 million square feet space across 125 acre over 10 years.
The new RCom will consist of enterprise, GCX, the data centre business and the 4G sharing business. Ambani said 50% of company's revenue will come from overseas operations. Even in this business, the company plans to rope in a strategic investor at an enterprise value of Rs 15,000 crore, he said, adding that non-binding bids have been received from 'global strategics.'
Earlier in October, RCom's merger talks with Aircel collapsed. Even a deal with Brookfield Infrastructure Group for selling its tower assets did not materialise.
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 "RCom shares surge 20% after Anil Ambani's firm announces exit from RBI's SDR")
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