The stock fell sharply by 15.26 per cent to end at Rs 10.55 on BSE. The tribunal's ruling is likely to jeopardise the company's deal with Reliance Jio Infocomm, which will nearly halve its debt.
The National Company Law Tribunal on Tuesday admitted an insolvency petition filed by communication major Ericsson against Anil Ambani-run RCom and two of its subsidiaries seeking to recover Rs 1,150 crore.
The battle is for the repayment of Rs 1,155 crore of dues, which Ericsson alleges that RCom owes it for managing and operating the former's telecom network in a seven-year agreement that both the companies had inked in 2014.
The court order sets back RCom's planned sale of airwaves, towers and fibre assets to Reliance Jio, the phone company owned by Ambani's older brother Mukesh, who is India's richest man. It is none other than Reliance Communications share price, which tanked 20 per cent after the National Company Law Tribunal (NCLT) admitted an insolvency plea filed by Sweden's Ericsson against Reliance Communications, potentially delaying the RCom's plans to sell assets to lighten its debt load.
The company has postponed its board meeting scheduled to be held on May 15 to May 19, 2018 to approve audited financial results for the quarter and year ended March 31, 2018.
Sistema Shyam Teleservices Ltd on Wednesday offloaded over 2.76 crore shares of debt-ridden RCom, lowering its holding to 3.44%.
A lawyer for RCom said it would appeal. The company said, "RCom and two of its subsidiaries - Reliance Telecom and Reliance Infratel - await A detailed order from NCLT, allowing the Ericsson application for admitting the companies to debt resolution under the IBC".
A two-member panel headed by Justice B S V Prakash Kumar said on Tuesday that an insolvency-resolution professional will be decided on in a day or two. Recently implemented bankruptcy rules bar takeovers of stressed assets by entities related to the defaulting promoters.
RCom's debt stands at Rs 46,000 crore.
RCom is the second-largest listed company by assets in Anil Ambani's business empire.