Reliance Capital will no longer be in any lending business: Anil Ambani

Anil-Ambani-

Mumbai: Reliance Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani on Monday said Reliance CapitalNSE -11.99 % would no longer be in any lending business.

“As a part of transformation process, Reliance Capital has decided it will not be in any of the lending businesses,” Ambani told shareholders at the company’s annual general meeting (AGM) in Mumbai.

Shares of Reliance Capital fell to Rs 24.20 on BSE, a level last seen on April 24, 1999.

He said that both the company’s lending businesses — Reliance Commercial Finance and Reliance Home Finance have an asset base of over Rs 25,000 crore.

“Reliance Commercial Finance and Reliance Home Finance are working closely with all our lenders and other stakeholders to finalize the resolution plans which are expected to be completed in the next few months by December 2019,” he added.

Ambani said that Reliance Capital will only be a financial shareholder in both these companies to reconverge shareholder value under a new management and shareholding structure and effectively reduce debt of Group by Rs 25,000 crore.

“NBFC suffered collateral damage due to a combination of factors, including reckless selling and rumour mongering over the past six months,” he said.

Retail shareholders of the company have increased by 10 lakhs, he said, adding that it is “unfortunate that true value of the business is not recognised amidst all the noises.”

Following the development, the scrip fell 4.11 per cent to hit a low of Rs 26.85.

Ambani said his group had repaid over Rs 35,000 crore in debt over last 15 months. It is close to repaying another Rs 15,000 crore by March 2020, despite nil funding from any bank, NBFC or financial institution.

Reliance ADAG Group has over Rs 60,000 crore receivables stuck in regulatory and arbitration proceedings. “We are transforming Reliance Capital,” Ambani said. “It is a young company.”

On Monday, Reliance Capital said it made interest and principal repayment of Rs 72.65 crore on Friday and Monday on a range of instruments, including non-convertible debentures, term loans and inter-corporate deposits.

It said the company remained current on all its repayment obligations. The company has completed 21.54 per cent stake sale in Reliance Nippon Life Asset Management to Nippon Life Insurance of Japan (Nippon) for Rs 3,030 crore, it said on Friday.

[“source=economictimes”]