RCom hits lower circuit after DoT refuses to renew licence

New Delhi: Shares of cash starved Reliance Communication (RCom) hit lower circuit on Tuesday after the Department of Telecommunication (DoT) refused to renew its licence.

The DoT refused to renew the telecom licence of the Anil Ambani led firm unless it clears its statutory dues of Rs 26,000 crore. If the bankrupt telco fails to do so it will be forced to surrender its spectrum and its asset sale plan under the insolvency process will get derailed.

Shares of Reliance Communication tanked 5 per cent, its daily circuit limit, to Rs 3.36 on Tuesday. However, the counter settled at Rs 3.53 on Monday. BSE Sensex was trading at 52,961.90, up by 81.9 points or 0.15 per cent at the time of writing this report.