The company, with $6.8 billion of net debt as of last March, said it will look to repay Rs 17,000 crore ($2.62 billion) of loans by selling assets such as mobile towers. It also pledged to repay another Rs 10,000 crore from sale or commercial development of its real estate assets.
Under a central bank debt restructuring plan, its lenders will also swap Rs 7,000 crore of the loans to take a 51 per cent stake in the company.
The stock was up 13 per cent at 9:22 am, compared with a 0.2 per cent fall in the broader NSE Nifty.
The stock has tumbled this year, hitting a series of record lows on worries about whether it can pay back its debt.
($1 = Rs 64.79)