RCom shares jump 13%, hit 30-month high on debt repayment

Shares in Reliance Communications rose as much as 13 per cent on Monday to their highest level in 2-1/2 years after the mobile carrier said it had repaid foreign currency loans worth a total $1.2 billion (around Rs 7,000 crore).

With a net debt of about $7 billion as of end-March, Anil Ambani promoted Reliance Communications was the most leveraged among listed Indian carriers. Its heavy debt load has hurt its profitability in the past years.

Dealers said the falling debt level as well as expectations of deal announcements are seen helping the stock. Reliance Communications is in talks to sell a stake in a unit that includes its undersea cable business.

"RCom's foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by dollar denominated earnings from the Reliance Globalcom business," the statement added.

Reliance Communications shares ended up 12 per cent at Rs 132.50 on the Bombay Stock Exchange (Track stock).

(With inputs from Reuters)