Shares of Reliance Communications (RCom) on Tuesday slumped over 9 % in morning trade on the bourses after the company called off merger with Aircel due to regulatory hurdles.
Reliance Communications, on October 1, had called off merger talks with Aircel, citing “legal and regulatory” delays.
Reacting to the news, the stock of RCom opened on a weak note at ₹ 18.70, lost further ground and fell to an early-day low of ₹17.45, down 9.11 % over its previous closing price.
Similar movement was seen on the National Stock Exchange, where the stock opened at ₹18.65, fell to a low of Rs 17.70, down 7.81 % over its last close.
RCom and Aircel had signed binding agreements in September 2016 for the merger of mobile business.
RCom, which is reeling under a debt of about ₹ 46,000 crore, has outlined an alternative plan for debt reduction by selling real estate as well as tower and fibre business.
“Legal and regulatory uncertainties, and various interventions by vested interests have caused inordinate delays in receipt of relevant approvals for the proposed transaction,” RCom had said in a statement.