Stocks to watch: RCom, ICICI Bank, Sun Pharma and sugar stocks

Investors are likely to take cues from global peers on Wednesday. In a tit-for-tat move, China added $60 billion of US products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods. That apart, movemement in the rupee will also be keenly watched. At 07:39 am, the Nifty futures on the Singapore Stock Exchange (SGX) were trading 2.50 points or 0.02 per cent lower at 11,312.50.

Below is the list of top stocks that may hog the limelight in today's session -

Reliance Communications: At the 14th AGM, RCom Chairman Anil Ambani announced that the company will exit telecom business completely, owing to intense slugfest in the sector and instead focus on real estate.

MCX: The stock may remain in focus today after Sebi on Tuesday has approved a proposal to allow foreign investors to trade in commodity derivatives market.
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RCom completes sale of some assets to Reliance Jio for Rs 20 billion

Reliance Communications on Thursday said it has completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 20 billion, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).

The transaction entailed 248 nodes covering close to 5 million sq. ft. of the area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement.

"Reliance Communications Limited (RCOM) today announced the completion of the sale of its MCNs and related infrastructure assets, worth Rs 20 billion, to Reliance Jio Infocomm," the RCom statement said.

Earlier this month, Reliance Communications had reinstated bank guarantees worth Rs 7.74 billion with the telecom department ahead of the timeline set by the telecom tribunal, and had said that its Rs 250 billion asset sale plans are "on track".

Last year, Anil Ambani-owned Reliance Communications signed a pact with Reliance Jio for sale of wireless spectrum, tower, fiber and MCN assets - the proceeds of which were to be used to reduce debt.

RCom gains 15% on settlement agreement with Ericsson

Reliance Communications (RCom) was up 15% to Rs 20.10 on the market in early morning trade after the National Company Law Appellate Tribunal (NCLAT) stayed the May 15 order of the National Company Law Tribunal (NCLT) in Mumbai, which had admitted the RCom and two of its subsidiaries for insolvency proceedings.
“The NCLAT vide its orders dated May 30, 2018 stayed, with immediate effect, all the three orders dated May 15, 2018 whereby NCLT had admitted the Company and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited to Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016,” RCom said in a statement.

RCom’s asset sale to Reliance Jio and Brookfield for an aggregate value of Rs 181 billion has been allowed to proceed by the Hon’ble NCLAT. The assets sale includes spectrum, fiber, telecom towers, MCNs and certain real estate assets in Delhi and Chennai, it added.

RCom expects to now complete the sale of its assets within the next few weeks, having removed legal hurdles of cases by minority investors of RITL, and Ericsson, thereby achieving an overall debt reduction of approximately Rs 250 billion from the first phase of its asset monetization program, the company said.

Reliance Communications gets bondholders' nod for asset sale to Jio

India's Reliance Communications Ltd (RCom) said on Wednesday its bondholders had approved their asset-sale plan, that includes the sale of certain assets to upstart rival Reliance Jio Infocomm Ltd.

Holders of the debt-laden telecom operator's $300 million bonds have also approved the monetisation of other real-estate assets, RCom said in a statement.

RCom also got approval for the partial release of noteholder collateral to help the sale get underway, the company said, adding the proceeds would be used for partial redemption of notes.

RCom last week had moved the Supreme Court in a desperate attempt to complete the asset sale and to also avoid going to the National Company Law Tribunal, according to a report in The Economic Times.

Earlier this month, the firm lost its appeal in the Bombay High Court against an arbitration tribunal ruling in the Ericsson case, where the Swedish company sought payment of unpaid dues.

Anil Ambani-controlled RCom got shareholders' nod in February to sell its wireless assets to Reliance Jio, the telecom unit of Mukesh Ambani-led Reliance Industries Ltd.

China Development Bank withdraws insolvency petition against RCom

China Development Bank (CDB), the biggest foreign lender to India's Reliance Communications Ltd (RCom), on Friday withdrew a petition seeking to drag the indebted telecoms carrier into insolvency.

A lawyer for CDB told the National Company Law Tribunal that the Chinese bank had filed to withdraw the petition. The tribunal allowed CDB's plea to go forward.

CDB, which is owed around $2 billion along with two other Chinese banks, had filed the petition in November seeking insolvency proceedings against RCom, saying a large amount of loan principal and interest payments was overdue.

After RCom's debt-reduction plan, including an asset sale to Reliance Jio Infocomm Ltd, was announced last week, CDB told Reuters that it was in talks with RCom.

Details of the terms of a possible settlement between the Chinese bank and RCom were not immediately known. By 0847 GMT, RCom shares were trading 4.2 percent higher in a Mumbai market that was up 0.4 percent.

Last week, RCom signed a deal to sell most of its wireless assets to Jio in a deal people familiar with the matter said was worth nearly 240 billion rupees ($3.8 billion), subject to final adjustments at the time the transaction closes.

2G scam; RCom's future, leadership: Top quotes from Anil Ambani's interview

The "new" Reliance Communications (RCOM) will be "capex light" and emerge as India's largest B2B (business-to-business) entity that is "focussed on the global and enterprise business", according to Reliance Group Chairman Anil Ambani.

It will also have a "strong strategic partner coming in the next few months", Ambani said in a wide-ranging interview to The Economic Times, his first in a decade.

"New RCOM will be stronger and be India's largest B2B business. It is capex light and we are very conservatively structured... The IDC (international data centres) business is set to explode. There is a huge opportunity -- and as an opportunity for India grows with $400 billion in reserves and good ratings, we will grow as well," Ambani said.


Anil Ambani gave an interview, his first in 10 years, to The Economic Times on Wednesday. Here are the top 10 quotes from the interview:

On 2G verdict: Truth prevails. No individual or corporation should undergo this humiliation, slander, damage to individual and corporate reputation. The reputation that you have built over years and years can be broken in an instant.

On seeking compensation over 2G verdict: You cannot rule out anything. What will you do, when will you, how can you do? There are so many constituents in the 2G constituency. Somebody does something, there is a collateral damage from the other side. It is complex, not simple as yes or no, it is not black and white.
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RCom clarifies on reports of China bank filing insolvency case; stock tanks

STOCK MARKET - Reliance Communications tanked 6.37% to Rs 12.50 at 9:19 IST on BSE after the company issued a clarification on media reports that China development bank is filing insolvency case against the company.
Meanwhile, the S&P BSE Sensex was down 34.14 points or 0.1% at 33,690.30.

On the BSE, 9.73 lakh shares were traded on the counter so far as against the average daily volumes of 43.18 lakh shares in the past one quarter. The stock had hit a high of Rs 13 and a low of Rs 12.20 so far during the day. The stock had hit a 52-week high of Rs 41 on 6 April 2017 and a record low of Rs 9.60 on 15 November 2017.

Reliance Communications (RCom) issued a clarification to the stock exchanges after market hours yesterday, 27 November 2017, with regard to media news titled "China development bank files insolvency case against Reliance communications". RCom said that the company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media.

RCom is engaged through the joint lenders forum (JLF) with all its lenders for a successful resolution of the strategic debt restructuring (SDR) process. The China Development Bank has also been actively participating in the JLF. RCom said it is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT. RCom added that it continues to remain engaged with all lenders including the China Development Bank and is confident and committed to a full resolution with the support of all the lenders.

Separately, RCom said it has entered into a binding share purchase agreement with Pantel Technologies and Veecon Media & Television for sale of its subsidiary Reliance BIG TV (RBTV), engaged in the business of direct-to-home (DTH) services across India.

Pursuant to this transaction, the buyers will acquire the entire shareholding of RBTV with business on an "as-in, where is" basis, along with existing trade and contingent liabilities. The transaction will help to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCom. The transaction is in consonance with RCom's stated objective to focus on B2B businesses of the new RCom, the company said in a statement.

20 stocks that have eroded shareholder wealth in CY17

STOCK MARKET - Shares of Anil Ambani-owned Reliance Communications (RCom) came under selling pressure again on Thursday and lost around 4.4% to Rs 9.75 levels, after the company recently defaulted on its interest payment obligation. On a year-to-date (YTD) basis, the stock has plummeted over 70%.

Besides RCom that has eroded shareholder wealth in CY17, shares of Videocon Industries, Religare Enterprises, Sintex, Lupin and Glenmark are some of the names in the BSE A group that have seen negative return thus far in CY17. By comparison, the benchmark indices – S&P BSE Sensex and Nifty50 – have gained around 25%.

Videocon is the top loser in this pack that has slipped nearly 86% to Rs 14 levels (YTD). The company that has an outstanding debt of nearly Rs 43,000 crore is learnt to have got in-principle approval of lenders to restructure debts after its promoters agreed to pump in Rs 3,000 crore as equity.

Religare Enterprises has slipped 82% thus far in CY17 to Rs 46 levels, but has recovered marginally from its 52-week low of Rs 42.70. Recently, the company reported that its standalone net loss has widened to Rs 47.39 crore for the first quarter ended June 30, 2017. It had registered a net loss of Rs 25.84 crore in the same quarter of 2016-17.

Given the backdrop, analysts say investors should not add these stocks to their portfolio as the business model remains weak and it will be difficult for these companies (RCom and Videocon) to claw back to profitability in the foreseeable future.

ADAG stocks fall: RCom, Reliance Nippon Life at fresh lows

STOCK MARKET - Three stocks from the Anil Ambani controlled Reliance Group companies – Reliance Communications (RCom), Reliance Home Finance and Reliance Nippon Life Asset Management  – have hit their respective new lows and Reliance Naval and Engineering hit 52-week low on the BSE in intra-day trade.

RCom touched a new low of Rs 11.35, down 6%, extending its Monday’s 14% decline, after the company posted a consolidated loss of Rs 2,709 crore in the second quarter ended September. This is the fourth straight quarter of loss for the company. It had reported a loss of Rs 1,234 crore in the first quarter ended June.

For the first half (April to September) of the current financial year 2017-18 (FY18), RCom has reported a consolidated net loss of Rs 3,919 crore against a net profit of Rs 152 crore in the same period of FY17. Revenue from operations declined 41% to Rs 6,109 crore from Rs 10,359 crore. The company in a results note said that it has missed interest payments on two outstanding domestic non-convertible debentures.

Reliance Nippon Life Asset Management (down 4.5% at Rs 273) and Reliance Home Finance (down 2.6% at Rs 72) were trading at their lowest since listing on November 6, 2017 and September 22, respectively.

Reliance Nippon Life Asset Management had raised Rs 1,540 crore through initial public offer (IPO) by issuing shares at price of Rs 252 per share.

Rcom hits new low on media reports that Brookefield called off deal

Reliance Communications (RCom) hit a new low of Rs 15.50, down 8% on the BSE in intra-day trade as the media report suggests that Brookefield called off the deal with the company after Aircel merger falls through.

The stock has fallen below its previous low of Rs 16.60 touched on October 30, 2017 touched on the BSE in intra-day trade.

The BSE said that the exchange has sought clarification from Reliance Communications on November 6, 2017, with reference to news appeared in economictimes.indiatimes.com dated November 4, 2017 quoting "Brookefield calls off Reliance Communications deal after Aircel merger falls through"

The reply is awaited.

Meanwhile, according to PTI report, the loss-making telecom operator Reliance Communications will shut down voice call service from December 1 and its customers can move to other networks by the end of the year, as per direction issued by the Telecom Regulatory Authority of India (Trai) on Friday.

At 12:18 PM; the stock was trading 5% lower at Rs 16 on the BSE, as compared to a marginal 0.02% decline in the S&P BSE Sensex. A combined 24.73 million shares changed hands on the counter on the BSE and NSE.

RCom nears record low on talk of closure of DTH business

Reliance Communications (RCom) dipped 5% to Rs 16.15 on the BSE in intra-day trade in an otherwise strong market after media reports suggested that the telecom company shutting down its direct-to-home (DTH) business. The stock was trading close to its record low of Rs 15.90 touched on October 12, 2017 in intra-day trade.

According to a Business Standard report, RCom, which is in the midst of a debt restructuring, is shutting down its direct-to-home television business from next month after it failed to find any buyer for the business.

RCom earlier tried to sell the company to rivals including the Sun group but later backed out citing low valuation. The company claims 5 million subscriber base as compared to Dish-Videocon merged entity which has close to 28 million subscribers, added report.

The BSE said the Exchange has sought clarification from Reliance Communications on October 25, 2017 with reference to news appeared in www.business-standard.com dated October 25, 2017 quoting "RCom to shut down DTH business next month". The reply is awaited.

At 11:31 AM; the stock was trading 2.3% lower at Rs 16.60 on BSE, as compared to 0.95% rise in the S&P BSE Sensex. A combined 23.63 million shares changed hands on the counter on the BSE and NSE.

In past three months, the stock tanked 35% from Rs 25.50 against 2% gain in the benchmark index. It touched a 52-week high of Rs 47.75 on October 25 last year and an all-time high of Rs 844 on January 10, 2008 in intra-day trade.

RCom hits record low as deal with Aircel called off

Reliance Communications (RCom) hit a record low of Rs 17.45, down 9% on BSE in early morning trade, after the enterprise stated that it has known as off its merger with Aircel, owned with the aid of Maxis of Malaysia. The inventory passed its preceding low of Rs 17.80 touched on June 14, 2017 on BSE in intra-day alternate.

“felony and regulatory uncertainties, and diverse interventions by means of vested hobbies, have precipitated inordinate delays in receipt of relevant approvals for the proposed transaction,” RCom said in a statement.

exceptional competitive depth inside the Indian telecom area, collectively with sparkling coverage directives adversely impacting financial institution financing for this sector, have also significantly affected industry dynamics, it added.

RCom and amongst others Aircel had signed binding agreements in September 2016 for the merger of RCom's wireless agencies with Aircel.

in the meantime, RCom in separate regulatory filing stated that it is in discussions with the Brookfield organization to promote as much as 100% stake in its tower subsidiary rather than the fifty one% it had earlier agreed upon. The international tower organisation is also engaged in a revaluation of the deal because of the failure of the merger among Aircel and RCom.

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RCom strikes Rs 11,000-cr tower deal with Brookfield Infra

Breaking News- Reliance Communications (RCom) today signed binding agreements with Canada-based Brookfield Infrastructure and institutional partners to sell its tower business for an upfront cash payment of Rs 11,000 crore.
RCom will "also receive B Class non-voting shares in the tower company, providing 49 per cent future economic upside from the business based on certain conditions", the company said in a statement.
RCom will utilise the cash proceeds solely to reduce debt, it said.
The tower business will be demerged into a separate company, to be 100 per cent owned and independently managed by Brookfield Infrastructure. The deal represents the largest-ever investment by an overseas financial investor in the infrastructure sector in India.(Read More)