Reliance Capital Ltd welcomes RBI move to resolve company's debt through IBC

Reliance Capital Limited has welcomed the Reserve Bank of India's (RBI) move to resolve the Company's debt in accordance with the IBC Code.

The Company will co-operate fully with the Administrator appointed by the RBI for the expeditious resolution of its debt in the best interests of all stakeholders.

The complexity of litigation initiated by certain secured and unsecured lenders, resulting in the pendency of over 10 cases in various fora, including the Hon'ble Supreme Court, Mumbai High Court, Delhi High Court and DRT, has effectively stalled the resolution of the Company's debt, despite its best efforts for the past over 2 years.

The Company owns profitable and valuable operating businesses, through its 100% shareholding in RGIC and 51% shareholding in RNLIC (a JV with global leader, Nippon Life Co. of Japan), which represent the majority of the value of the Company being a Core Investment Company (CIC), besides other financial investments.

The Company has no outstanding loans from banks and approx 95% of its debt is in the form of debentures.

The Company looks forward to expeditious resolution of its debt and continuation as a well capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders.

Shares of Reliance Capital Limited was last trading in BSE at Rs. 19.05 as compared to the previous close of Rs. 20.05. The total number of shares traded during the day was 504541 in over 1227 trades.

The stock hit an intraday high of Rs. 20.90 and intraday low of 19.05. The net turnover during the day was Rs. 9781010.00.

Source : Equity Bulls

Keywords

RelianceCapitalLimited INE013A01015 RELCAPITAL NBFC Administrator RBI IBC