Reliance Capital, the non-banking finance company of Reliance Group headed by Anil Ambani, has decided to withdraw from all lending activities.
The company’s lending arms – Reliance Commercial Finance and Reliance Home Finance – are in talks with the lenders to finalize a resolution plan by the end of the year. “As part of the transformation process, Reliance Capital has decided that it will not be involved in any of the lending activities. Reliance Capital will only be a financial shareholder of these two companies to reconverge shareholder value under a new management structure and shareholding and effectively reduce the group’s debt by ₹25,000 crore,” Mr Ambani told shareholders at the company’s Annual General Meeting (AGM) here
According to Mr. Ambani, the company has suffered enormous collateral damage over the past six months due to a combination of factors, including the crisis in the financial services sector, “the irrational action of auditors and rating agencies or “the now-recognized temporary slowdown”. of the Indian economy.’
It is the second major business the Anil Ambani-led group is leaving after its former flagship Reliance Communication closed two years ago and is now in bankruptcy proceedings. Shares of Reliance Capital closed down 12.32% at ₹24.55 before hitting a 52-week low of ₹24.20 on Monday in a weak Mumbai market, valuing the company at 620.40 ₹ crore.
Shares of Reliance Home Finance also hit a 52-week low at ₹3.81 before closing down 4.49% to 3.83, valuing the company at ₹185.59 crore.