âAs part of the transformation process, Reliance Capital has decided that it will not participate in any of the lending activities,â Ambani told shareholders at the company’s annual general meeting (AGM) in Mumbai.
Reliance Capital shares fell to Rs 24.20 on BSE, a level last seen on April 24, 1999.
He said the company’s two lending businesses – Reliance Commercial Finance and Reliance Home Finance have an asset base of over Rs 25,000 crore.
âReliance Commercial Finance and Reliance Home Finance are working closely with all of our lenders and other stakeholders to finalize resolution plans which are expected to be completed in the coming months by December 2019,â he added.
Ambani said that Reliance Capital will only be a financial shareholder in these two companies to reconverge shareholder value under a new management and shareholding structure and effectively reduce the group’s debt by Rs 25,000 crore.
âThe NBFC has suffered collateral damage due to a combination of factors including reckless sales and rumors over the past six months,â he said.
The company’s retail shareholders rose by 10 lakhs, he said, adding that it is “unfortunate that the true value of the company is not being recognized amid all the noise.”
After development, the script fell 4.11% to a low of Rs 26.85.
Ambani said his group had paid off more than Rs 35,000 crore in debt over the past 15 months. He is on the verge of repaying another crore of Rs 15,000 by March 2020, despite zero funding from any bank, NBFC or financial institution.
The Reliance ADAG group has claims of over Rs 60,000 crore blocked in regulatory and arbitration proceedings. âWe are transforming Reliance Capital,â Ambani said. âIt’s a young company.
On Monday, Reliance Capital said it repaid interest and principal of Rs 72.65 crore on Friday and Monday on a range of instruments, including non-convertible debentures, term loans and intercompany deposits.
He said the company was staying up to date on all of its repayment obligations. The company has finalized the sale of 21.54% of its stake in Reliance Nippon Life Asset Management to Nippon Life Insurance of Japan (Nippon) for Rs 3,030 crore, it said on Friday.