Rcom hits a new high
Rcom hit a new 52-week high today at Rs.134.25 and it remains around the same levels, trading in the green. Less than a year ago, on 30th Aug’12, it is hard to believe looking at today’s price that it had hit a new low at Rs.46.60.
The stock is after the company announced yesterday that it has made full repayment of two loans amounting to $1 billion (around Rs 6,000 crore) during the June quarter. In the Press Release, it has stated that it has repaid the two Syndicated ECB loan facilities of $500 million each, which were availed in 2007 from a group of international banks. In addition, the company has also made scheduled repayments of another $207 million (Rs 1,200 crore) w.r.t other foreign currency loans, on the respective due dates during the April—June quarter. Debt is the biggest bone of contention with Rcom and the market is happy to see that the company is now taking efforts to now pare this debt. Any effort made to cut debt further will only add to the stock price.