Reliance Capital Chairman Anil Ambani said on Tuesday that after the completion of the Reliance Home Finance and Commercial Finance resolution, Reliance Capital’s debt will decrease by 20,000 crore. It will be a great relief for Reliance Capital.
Earlier this year, the lenders selected Authum Investment and Infrastructure Limited (Authum) as the successful bidder to acquire RCF and RHF. The resolution plan has been approved by the lenders that are part of the Inter-Creditor (ICA) under the Reserve Bank of India Prudential Framework for the Resolution of Distressed Assets, 2019. While Reliance Capital holds 100 percent of Reliance Commercial Finance (RCF), it is a majority shareholder of Reliance Home Finance (RHF).
The consolidated debt of Reliance Capital is Rs 40,000 crore and the resolution of the two lending activities – RCF and RHF will have an impact on the consolidated debt of Reliance Capital, Ambani said. “Between these two companies (RCF and RHF), there is a debt of over Rs 20,000 crore, and this will be deconsolidated from Reliance Capital’s balance sheet. Thus, only two transactions for RHF and RCF will reduce our debt by 50 percent. . Rs 20,000 crore, ”Ambani said at Reliance Capital’s annual general meeting.
After that, Reliance Capital will have around Rs 15,000 crore of secured debt represented by NCDs (non-convertible debentures) or debenture holders, and around Rs 5,000 crore of unsecured and secured debt, he added.
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