Shares of Reliance Anil Dhirubhai Ambani Group (ADAG) companies, Reliance Capital and Reliance Infrastructure, continued their losing streak for seventh consecutive session on Wednesday as lenders invoked pledged shares of these companies.
Reliance Capital share price was locked in the 5 per cent lower circuit at Rs 18.05 on the Bombay Stock Exchange (BSE) after YES Bank invoked nearly 16 lakh equity shares of the company held by promoter Reliance Inceptum Private Limited. In the last seven trading sessions, the stock of the non-banking financial company (NBFC) firm has tumbled as much as 30 per cent.
After invoking of shares, the total promoters' holding in Reliance Capital have come down to 39.65 per cent from 41.52 per cent earlier.
In a similar development, shares of Reliance Infrastructure also saw a decline of 5 per cent, hitting its lower circuit limit of Rs 33.25 apiece on the BSE. The stock has declined 29 per cent in seven days after the lenders invoked shares owned by promoter entities in the company.
Shares of ADAG group companies were under stress after Anil Ambani, along with four directors, resigned as the chairman of Reliance Communications.
In an exchange filing on Tuesday, Reliance Capital said CARE Ratings had downgraded the company's entire outstanding debt to default 'CARE D' rating, "even though there were no over dues on principal or interest payment to any lender". The company had delayed the payment interest/ principal obligations on the non-convertible debenture due on November 18, 2019.
"Reliance Capital has not received a single rupee of fresh borrowings from any bank or financial institution from the past over 18 months i.e. from April 1, 2018. Despite this extraordinary and unprecedented environment, the company has remained current on all its debt servicing obligations till date, and made principal and interest payments aggregating over Rs 8,000 crore during this period," the company had said in a filing to the BSE.
The company said that it expected to make continuing progress in its ongoing asset monetisation and deleveraging programme and arrive at an appropriate repayment plan for its overall borrowings.
Edited by Chitranjan Kumar