Shares of Reliance Communications were up 8 percent in early trade, after having fallen 18 percent on Wednesday.
Anil Dhirubhai Ambani Group (ADAG) stocks on Thursday rallied by up to 70 percent intraday on a report of settlement talks between Reliance Communications and Ericsson over an insolvency plea filled by the latter.
Shares of Reliance Communications were up 8 percent in early trade, after having fallen 18 percent on Wednesday. The stock rallied after reports that the company would appeal to the National Company Law Appellate Tribunal (NCLAT) against the National Company Law Tribunal's (NCLT) decision to admit Ericsson's insolvency plea.
The NCLT had admitted the petition earlier this week. The Swedish communications equipment major is looking to recover dues of around Rs 1,150 crore from Reliance Communications and two of its subsidiaries.
Reliance Communications and Ericsson have now informed the NCLT that they are in talks for a settlement, according to a report by CNBC-TV18, which quoted sources as saying.
Both companies have requested NCLT to keep the insolvency order in abeyance. Reliance Communications intends to pursue a resolution for its debt outside the purview of the Insolvency and Bankruptcy Code, after agreeing upon a settlement with Ericsson.
Reliance Communications ended at Rs 16.55, up 56 percent, while Reliance Capital closed with a gain of 5 percent at Rs 392.25. Reliance Naval and Engineering was up 33 percent at Rs 16.90.
The other ADAG stocks Reliance Power and Reliance Infrastructure ended with 7 percent and 3 percent gain at Rs 35.60 and Rs 396.75 respectively, on BSE.Posted by Rakesh Patil