Shares of the Anil Ambani-owned Reliance Communications dropped to an all-time low of Rs 16.75 per share on the stock market on Tuesday afternoon, two days after the company called off its merger with Aircel. The firm’s share price recovered to Rs 17.15 at the end of the day, still an all-time closing low.
Reliance Communications’ stock had begun the day at Rs 18.70 per share on both indices, after closing at Rs 19.20 per share on Friday. Markets were closed on Monday on the occasion of Gandhi Jayanti.
In an exchange filing, the Anil Ambani-led company said on Sunday that it had allowed the merger plan with Aircel to lapse with mutual consent, as “legal and regulatory uncertainties and various interventions by vested interests” had caused delays in getting necessary approvals. R-Com had also cited the growing competition in the telecom industry and policy changes as its reasons for calling off the deal.
In September 2016, Reliance Communications had said it would merge its wireless business with Aircel. The envisaged joint venture, worth Rs 35,000 crore, would have been the largest-ever consolidation deal in the telecom sector in India.