According to BSE data, 72,035,371 shares of Reliance Communications had been dumped to Indian retailers in the last year by few institutional Funds. In March 2016, the total number of shares held by retail investors was 221,122,326 which constitutes to 8.92% of the total number of stocks. By March 2017, the count had increased to 293,157,697 which constitutes to 11.82% of the total number of stocks. EUROPACIFIC GROWTH FUND dumped 5,61,98,451 shares and NEW WORLD FUND INC dumped 3,38,19,250 shares. A loin share of these sells (nearly 7.2 crore shares) were absorbed by poor Indian retailers.
1. LIC is holding 16.46 crore shares of Reliance Communications for a long period
2. Axis securities has continuously given buy recommendation on Reliance Communications in 2016
3. ET reports that Reliance Communications is in a tough spot as it has defaulted on its loan servicing obligations with more than 10 local banks. The report says that some banks have even listed their exposure to Reliance Communications as “special mention account”. in their assets. Special Mention Accounts (SMA) are those assets/accounts that show symptoms of bad asset quality in the first 90 days itself.
4. Shares of Reliance Communications have fallen 20% in the past two weeks after CARE and ICRA downgraded ratings of the telecom operator’s bonds due to the pressure the telcom faces in Indian telecom market and its debt obligation.
5. Promoters have pledged nearly 50% of their total holdings which is quite unusual in large cap companies
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|Rs 820 to 20!!|
|Getting Ready With Another One!!|
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