Reliance Communications has exited the strategic debt recast, Reliance Group Chairman Anil Ambani said on Tuesday, adding that no debt of the company will be converted into equity.

The company will monetise its assets, including mobile switching nodes and real estate. Reliance Communications has plans to reduce debt by Rs 25,000 crore via spectrum transfer and pre-payments, Ambani said.

The debt resolution plans involved zero writeoff to the lenders.

The enterprise value of new Reliance Communications is at Rs 15,000 crore as per projections by Credit Suisse, Ambani said.

Shares of the company traded nearly 32 per cent higher at Rs 21.55 in afternoon trade on Tuesday, eventually closing 30.78 per cent up at Rs 21.33.

"The group has been facing some headwinds lately," said Ambani. He said he expects all transaction to close during the first quarter of 2018.

Fag-end recovery in banking stocks also aided domestic equity markets in the late tarde. Shares of lenders got traction action after Chairman of Reliance Group Anil Ambani said Reliance Communications has exited the strategic debt recast and further stated that no debt of the company will be converted into equity.

The company will monetise its assets, including mobile switching nodes and real estate. Reliance Communications has plans to reduce debt by Rs 25,000 crore via spectrum transfer and pre-payments, Ambani said.

With this resolution, Indian banks' telecom exposure will go down by Rs 21,000 crore.

Shares of Federal Bank, YES Bank, IndusInd Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank closed higher in between 0.15 per cent and 2 per cent. On the other hand, PNB, SBI, BoB and HDFC Bank slipped between 0.60 per cent and 0.95 per cent.

Ambani pegged the valuation of development potential of 125 acres at DAKC at Rs 25,000 crore and the new Reliance Communications to have a debt of less than Rs 6,000 crore.

There is no risk for Reliance Communications' bondholders, he said.