MUMBAI, May 30 (Reuters) - Shares in Indian telecom operator Reliance Communications Ltd dropped on Tuesday, adding to a sharp slide a day earlier, hurt by investor concerns over its ability to service its loans.
Reliance Communications, widely known as RCom, sought to reassure investors in its quarterly conference call on Monday, saying it was in talks with its lenders to defer loan instalments coming due in the next four months as it works on closing two deals.
The firm, controlled by billionaire Anil Ambani, plans to repay lenders 110 billion rupees ($1.7 billion) and refinance an even larger chunk by end-September, if lenders sign off on the merger of its wireless segment with rival Aircel and sale of a majority stake in its tower unit to Canada’s Brookfield.
Despite those plans, RCom’s shares fell as much as 7.6 percent in early trading on Tuesday before paring losses to be down 4 percent. It plunged 20.4 percent on Monday.
$1 = 64.6500 Indian rupees Reporting by Sankalp Phartiyal; Editing by Euan Rocha and Edwina Gibbs