Reliance Communications updates on pledged shares of subsidiary

Reliance Communications Limited ("RCOM") had previously announced the receipt of a notice dated November 09, 2022 from Axis Trustee Services Limited ("Axis Trustee"), seeking to invoke and sell 100% of equity shares of Globalcom IDC limited ("GIDC"), a step down wholly owned subsidiary of RCOM, which were pledged by Reliance Webstore Limited ("RWSL"), a wholly owned subsidiary of RCOM, in favour of State Bank of India.

RCOM has now received another email from Axis Trustee on December 14, 2022, stating that it has invoked the pledge over 20,99,994 equity shares of GIDC (i.e. 100% of the equity shares of GIDC).

The detailed background in relation to the above, is as follows:

- RWSL is a wholly owned subsidiary of RCOM, holding 100% of equity shares in GIDC.

- Vide facilities agreement dated August 29, 2016, RCOM and Reliance Infratel Limited ("RITL") had availed a loan facility of Rs. 565 Crore and Rs. 635 Crore respectively from State Bank of India ("Lender").

- Vide share pledge agreement dated September 23, 2016, RWSL has pledged 100% of its shareholding in GIDC comprising 20,99,994 equity shares to the Lender for above loan facility.

- As per the notice dated November 09, 2022 received from Axis Trustee, as on November 04, 2022 amount of Rs. 1401.03 Crore and Rs. 1404.03 Crore are due and payable to the Lender by RCOM and RITL respectively against the above loan facility.

- During the financial year 2021-22, the turnover of GIDC was Rs. 132.21 Crore which is 30.19% of the consolidated turnover of RCOM during the financial year 2021-22.

- Basis email dated December 14, 2022, RCOM has been informed that the pledge created over 20,99,994 equity shares of GIDC (i.e. 100% of the equity shares of GIDC) by RWSL has been invoked by Axis Trustee.

Source : Equity Bulls

Keywords

RelianceCommunications RCOM PledgeInvoked GIDC Stake