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Anil Ambani's Reliance Capital clears commercial paper dues worth Rs 75 crore

Last month, Anil Ambani-led Reliance Group had claimed that over Rs 35,000 crore of loans--- principal of Rs 24,800 crore and interest payments of Rs 10,600 crore --- have been paid back in the last 14 months and all future payment obligations will be met in a timely manner

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 25, 2019  | 16:57 IST
Anil Ambani's Reliance Capital clears commercial paper dues worth Rs 75 crore
Reliance Capital share price rallied as much as 9.91 per cent in intra-day trade on Thursday

The Anil Ambani-controlled financial services company Reliance Capital on Thursday said it has fully repaid its outstanding Commercial Paper (CP) of Rs 75 crore on July 24, 2019.

"With the above repayment the CP outstanding stands at zero from the peak outstanding amount of approximately Rs 3,500 crore," Reliance Capital said in a filing to the Bombay Stock Exchange.

The financial services arm of the troubled Reliance Anil Dhirubhai Ambani Group (ADAG) said the CPs were rated A4 by ICRA, and have been repaid in full on the due date.

The financial services businesses of Anil Ambani are facing crises as the rating agencies doubt the group's ability to repay the debts. As of March 31, 2019, Reliance Capital had net debt of Rs 46,400 crore.

Last month, the Reliance Group had claimed that over Rs 35,000 crore of loans--- principal of Rs 24,800 crore and interest payments of Rs 10,600 crore --- have been paid back in the last 14 months and all future payment obligations will be met in a timely manner.

Also Read: Reliance Group has serviced debt of over Rs 35,000 crore in 14 months, says Anil Ambani

In a separate development, Reliance Capital, which is in the process of exiting the mutual fund business, has reportedly pledged 22 per cent of its stake in Reliance Nippon Life Asset Management (RNAM) as some lenders sought comfort from the financial services company over certain loans, reported Business Standard.

Cash-strapped Reliance Capital is in the process of exiting the mutual fund (MF) business to cut its debt. Earlier in May this year, it had announced exit from the MF business by selling its 42.88 per cent stake in RNAM to its joint venture partner Nippon Life.

Also Read: Anil Ambani falls off billionaire club; equity wealth crashes from $42 billion to $0.5 billion

Boosted by the development, Reliance Capital share price rallied as much as 9.91 per cent in intra-day trade on Thursday after opening higher at Rs 50.90 against previous close level of Rs 49.90. Paring most of the day's gain, the stock settled at Rs 50.10, up 0.40 per cent on the BSE.

Edited by Chitranjan Kumar

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