Shares of Reliance Communications (RCom), a penny stock trading below ₹1, were locked in the 5% upper circuit in Tuesday’s trade on April 6, reaching ₹0.90 apiece, following a key company update. The company today announced its quarterly disclosure of defaults on interest payments and repayment of principal on loans from banks, financial institutions, and unlisted debt securities.
Tuesday’s rally marked the fourth straight day of gains, taking the four-day cumulative gain to 18.42%, even as the broader market remained under severe volatility.
Despite the renewed interest in the stock, RCom continues to remain under stress due to its debt-laden balance sheet and ongoing insolvency proceedings. In late February, the Bombay High Court quashed a single-bench interim order that had stayed proceedings initiated against Anil Ambani and Reliance Communications Ltd to classify their bank accounts as fraud.
A division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad allowed the appeals filed by three public sector banks and auditor firm BDO India LLP against the December 2025 interim order passed by a single bench of the HC.
In the same month, the Supreme Court ruled that telecom spectrum is a “material resource of the community” and cannot be treated as an ordinary asset under the Insolvency and Bankruptcy Code (IBC).
The decision came in the insolvency proceedings of Aircel and Reliance Communications (RCom), where lenders had sought to monetise spectrum to recover dues.
RCom, Aircel, and Videocon Telecommunications entered insolvency between 2018 and 2019, leaving unpaid statutory dues exceeding ₹40,000 crore. The government argued that spectrum cannot be transferred unless all outstanding dues are cleared.
Reliance Communications share price trend
The sell-off in Reliance Communications shares has further intensified, with the stock closing the last seven months in negative territory and losing a cumulative 50%. The stock witnessed a massive correction in 2008, declining 69.56% during the year, and the downward trend has continued to date, with it slipping to ₹0.75 earlier this year.
The prolonged decline has reduced the company’s market capitalisation to ₹248 crore, with retail investors bearing the brunt of the losses, as nearly 94% of the stake is held by the general public as of the December-ending quarter, according to Trendlyne shareholding data.
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