Anil promises debt servicing on time
Reliance Group Chairman Anil Dhirubhai Ambani reaffirmed that the group was fully committed to meeting all future debt servicing obligations on time through asset monetisation plans that are at various stages of implementation.
Addressing a conference call, Ambani said the Reliance Group has made payments of over Rs 35,000 crore in the 14-month period from April 1, 2018 to May 31, 2019. These comprise principal repayments of Rs 24,800 crore and interest payments of Rs 10,600 crore.
Ambani said the amount included debt servicing payments by Reliance Capital Group, Reliance Power Group and Reliance Infra Group, and their respective affiliates.
“Unwarranted rumour mongering, speculation, and bear hammering of all Reliance Group companies shares over the last few weeks, has caused grave damage to all our stakeholders,” Ambani said.
Statements from Ambani led to some buying in Reliance Group stocks. Stocks that gained on the BSE on Tuesday included Reliance Capital (2.96 per cent), Reliance Power (3.48 per cent), Reliance Home Finance (8.90 per cent) and Reliance Infrastructure (1.17 per cent).
Ambani also said that staggering amount of over Rs 35,000 crore have necessarily
had to be made almost entirely from asset monetisation.
He said these payments have been made in the face of insurmountable odds and the most challenging financial environment witnessed in the country in decades.
Further Ambani pointed out that during this entire period, lenders from all categories– whether banks, mutual funds, insurance companies, provident funds or NBFCs-have provided zero net additional liquidity or debt to any entity of the Reliance Group.
Ambani said Rs 30,000 crore pending dues to Reliance Group companies compounded matters. “The regulatory bodies and courts have not passed any final adjudication orders on claims aggregating to over Rs 30,000 crore that are due for more than 5-10 years to various group companies, especially Reliance Infrastructure and Reliance Power, and their affiliates,” he said.