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

On Monday, Reliance Anil Dhirubhai Ambani Group (AG) Chairman Anil Ambani revealed that Reliance Capital would longer be in lending business. He was dressing Annual General Meeting of Reliance Capital. He mentioned that effective debt of company would be reduced by Rs.25,000 crore. According to him, debt resolution plans would be rey by December 2019. A week ago, credit ncy CARE h downgred rating of Reliance Capital to ‘CARE D’ for its long-term debt program and subordinated debt. 

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‘Slowdown of Indian ecomy’ 

Ambani stated that Reliance Capital h suffered significant collateral dam for more than 6 months. He fixed blame on slowdown in Indian ecomy, irrational action by auditors amongst many or factors.  

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He said, "As part of transformation, Reliance Capital has decided that it will longer be in lending business. Reliance Capital will be a financial shareholder in both companies to re-converge shareholder value under new manment and shareholding structure. effective debt of Reliance Capital will stand reduced by ₹25,000 crore.” Ambani ded, “Reliance Commercial Finance and Reliance Home Finance are working closely with all our lenders and or stakeholders to finalize resolution plans which are expected to be completed in next few months by December 2019.” 

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Share prices tank 

Reliance Capital also anunced that it h paid back interest and principal of Rs.72.65 crore on n-convertible debentures, term loans, and inter-corporate deposits. It sold 21.54% of its stake in Reliance Nippon Life Asset Manment to Nippon Life Insurance of Japan for Rs.3,030 crore. Due to Ambani's anuncement, shares of Reliance Capital tanked to Rs.24.20. This was a historic plunge of nearly 13.57%. Its shares have lost nearly 99% of ir value since hitting an all-time high in January 2008.  

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