Rcom jumps up, says, "Jio!"

Rcom is the second top gainer on the BSE currently, going up 15% to Rs.17.06, with volumes more than doubling up.

The stock price has jumped up on news that the Supreme Court has today approved a settlement between Rcom and the Indian unit of Ericsson. The court has directed Rcom to pay Rs.550 crore to Ericsson by 1st Oct and also directed Chairman Anil Ambani to give an undertaking to pay Ericsson the amount. Rcom’s plea to end the insolvency case  will also be heard of Oct. 1.

This is good news for the market as this case of Ericsson was this now clears the way for Rcom to sell its assets to Reliance Jio.

Ericsson withdrew the agreement with Rcom under which the latter had agreed to pay Rs 500 crore to the former to resolve issues related to unpaid dues.

Ericsson signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecoms network and has not been paid for the service. The Swedish company was seeking Rs 1600 crore from RCom and two of its subsidiaries and had opposed the sale of RCom's assets to Jio.