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Reliance Communications allots 10% shares to Sistema Shyam Teleservices

Maitrayee Iyer | PTI
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RCom says not making any payment to lenders for time being

Reliance Communications said today that it is not making any payment to lenders or bondholders for the time being as it is under ‘standstill period’ with the invocation of strategic debt restructuring scheme and working on asset-monetization. In a regulatory filing, the telecom operator said that is in standstill period until December 2018 pursuant to the SDR (Strategic Debt Restructuring) guidelines. “The Company has also announced various asset sales and a comprehensive debt resolution plan, as advised per our earlier letter dated 30th October 2017. Accordingly, for the time being, no payment of interest and/or principal is being made to any lenders and/or bondholders of RCom,” the Anil Ambani led firm said in a BSE filing. The filing was in

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Com has allocated over 27.65 crore shares equivalent to 10 percent equity capital of the company to Sistema Shyam Teleservices.


Debt-ridden telecom firm Reliance Communications has allotted 10 percent shares to Sistema Shyam Teleservices which merged with the company early this month.

RCom has allocated over 27.65 crore shares equivalent to 10 percent equity capital of the company to Sistema Shyam Teleservices (SSTL) on November 9, as per a regulatory filing. The value of shares allocated to Russian conglomerate Sistema owned SSTL is estimated to be around Rs 415 crore as per the trading price of RCom stock at BSE on November 9.

The completion of SSTL business merger provided a breather to RCom which will shut down its loss-making wireless telephony business by December 30 and concentrate only on 4G internet services. As part of the deal, RCom has acquired the entire telecom business of SSTL including its licences which bring along 30 MHz of spectrum in 800 MHz and 850 MHz band, considered premium frequencies for providing 4G services.

SSTL merger has resulted in the extension of RCom’s spectrum validity in the 800 MHz and 850 MHz band in eight telecom service areas — Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal — by 12 years, from 2021 to 2033.

RCom now has the liability to pay DoT instalments for SSTL’s spectrum, amounting to Rs 390 crore per annum for the next 8 years. With Rs 44,000 crore loan on its books, RCom is in the midst of a strategic debt restructuring, under which it has entered into a standstill agreement with banks requiring it not to pay any interest or principal till December 2018. Shares of RCom closed at Rs 14.05, down by 6.33 percent, on the BSE.