Reliance Capital Debt Piles Up to Rs 19805 Crore
The principal amount due to Housing Development Finance Corporation (HDFC) is Rs 523.98 crore and to Axis Bank Rs 100.63 crore.
The principal amount due to Housing Development Finance Corporation (HDFC) is Rs 523.98 crore and to Axis Bank Rs 100.63 crore. The total amount of outstanding borrowings from banks and financial institutions works out to Rs 679.23 crore, including accrued interest up to August, said the company.
“The total financial indebtedness of the listed entity including short-term and long-term debt totals Rs 19,805.7 crore, including interest accrued up to August 31, 2020,” it said in regulatory filings at stock exchanges late on Friday.
The delay in debt servicing is due to the prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets after the Delhi High Court’s order on November 20, 2019.
After the proceedings initiated by Vistra ITCL India Ltd, the Debts Recovery Tribunal on December 3, 2019, also prohibited the company from transferring, alienating, encumbering or otherwise parting with the possession of assets owned by the company.
“In view of the above, the company is unable to proceed with its asset monetisation resulting in a delay in its debt servicing,” said Reliance Capital.
Last year, the company said that it has suffered great collateral damage due to a combination of factors, including the crisis in the financial services sector, irrational action by auditors and rating agencies, and a slowdown in the Indian economy.
On Friday (September 18), shares of Reliance Capital closed 1.03 per cent lower on BSE at Rs 8.64 per unit.