Reliance Communications shares rally 6% to hit upper circuit

New Delhi: Shares of Reliance Communications hit their upper circuit on Monday, rising over 6 per cent, amid reports that Bharti Airtel, Reliance Industries and three others may bid for the assets of debt-ridden company.

On the BSE, shares of the company closed 4.55 per cent up at 69 paise apiece. Similarly, the stock advanced 6.67 per cent to settle at 80 paise on the NSE.

Meanwhile, Bharti Airtel zoomed 7.2 per cent higher to close at Rs 451.30 and Reliance Industries (RIL) settled 0.92 per cent up at Rs 1,560.70 on the BSE.

Bharti Airtel, RIL and three others are likely to bid for the assets of debt-ridden Reliance Communications on Monday, according to sources close to the development.

"Varde Partners, Bharti Airtel and Reliance Industries, UV Asset Reconstruction Company (UVARCL) are among the main contenders for RCom assets," sources said.

The last date to submit bids will end on Monday and RCom committee of creditors will also meet on the same day to open bids. RCom's secured debt is estimated to be around Rs 33,000 crore.

Lenders have submitted claims of around Rs 49,000 crore in August. As per a National Company Law Tribunal (NCLT) order, resolution professional has to complete the insolvency process by January 10, 2020.