Reliance Capital Chairman Anil Ambani said on Tuesday that after the completion of the resolution of Reliance Home Finance and Commercial Finance, the debt of Reliance Capital will come down by 20,000 crores. This will be a big relief for Reliance Capital.
Earlier this year, lenders had selected Authum Investment and Infrastructure Limited (Authum) as the successful bidder to acquire RCF and RHF. The resolution plan was approved by lenders forming part of the Inter-Creditor (ICA) under Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets, 2019. While Reliance Capital holds 100 percent take in Reliance Commercial Finance (RCF), it is a majority shareholder in Reliance Home Finance (RHF).
Reliance Capital's consolidated debt is Rs 40,000 crore and the resolution of the two lending businesses - RCF and RHF will have an impact on the consolidated debt of Reliance Capital, Ambani said. "Between these two companies (RCF and RHF), there is a debt of over Rs 20,000 crore, and this will be deconsolidated from Reliance Capital's balance sheet. So, just two transactions for RHF and RCF will drop our debt by a staggering 50 percentor Rs 20,000 crore," Ambani said during the Reliance Capital's Annual General Meeting.
Post this, Reliance Capital will have roughly Rs 15,000 crore of secured debt represented by NCDs (non-convertible debentures) or debenture holders, and around Rs 5,000 crore worth of unsecured and guaranteed debt, he added.