Due to a large amount of debt, a lot of Anil Ambani’s companies that are listed on stocks are going through bankruptcy. This also affected the shares of listed companies and they have crashed badly.
One of these companies is Reliance Communications (NSE: RCOM) of the telecom industry. The share of this company has fallen from Rs 700 to Rs 2 in 17 years. Now RCom is being discussed once again.
The Reason Why It Is In Discussion
In reality, NCLAT has rejected the request of state-tax department to claim the dues of Reliance Communications. The claims of dues against the firm were based upon an appraisal made following the bankruptcy process.
A two-member court of NCLAT upheld the order of the Mumbai bench of the National Company Law Tribunal (NCLT), which ruled against the claim of the sum of Rs 6.10 crore for the tax department of the state.
What’s The Issue?
The CIRP (Corporate Insolvency Resolution Process) against RCom was launched on June 22, 2019. Then the state tax department filed two claims.
The first claim was for Rs 94.97 lakh on July 24, 2019, and the second claim was for Rs 6.10 crore on November 15, 2021. A second demand was made based on the assessment order that was issued on August 30, 2021.
It was reported that the NCLT had approved the first claim, which was approved before the beginning of CIRP. However, the NCLT did not agree with the second one, which was based on an assessment order, which was approved in 2021..
RCom’s Share Performance
Talking about the share of Reliance Communications, it is for Rs 2 and trading is also closed these days. For some time now, the message Trading Restricted has been visible on BSE.
The stock was at the price of 2.49 in December of last year. It is also the 52-week peak of the stock..
In May 2024, the stock was at Rs 1.47. This is the 52-week low for this stock. When we examine the chart for all time that Reliance Communications, this stock had reached a peak of Rs 700 in 2007.
Let us inform you that the promoter of the company was Anil Ambani. Anil Ambani’s family now has only a 0.36 percent stake.
Quick Fact
| Company name | Reliance Communications |
|---|---|
| Reason in discussion | NCLAT rejection of state-tax department’s dues claim |
| Industry | Telecom |
| CIRP start date | June 22, 2019 |
| First claim (₹) | 94.97 lakh |
| First claim date | July 24, 2019 |
| Second claim (₹) | 6.10 crore |
| Second claim date | November 15, 2021 |
| NCLT decision | Approved first claim, rejected second |
| Share price in 2007 (₹) | 700 |
| Share price in 2023 (₹) | 2 |
| Promoter’s stake | 0.36% |
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