Reliance Capital Companies of Anil Ambani Group Headed for Default?
Multiple companies of Reliance Anil Dhirubhai Ambani group (ADAG) are suffering a huge ratings downgrade to default imminent status by multiple rating agencies. CARE Ratings has downgraded Rs12,700 crore worth of Reliance Commercial Finance’s debt to “CARE D”. “CARE D” rating indicates that the instruments are in default or expected to be in default soon. Of this, Rs12,500 crore is towards long-term bank facilities and remaining Rs200 crore is towards non-convertible debentures.
 
At the same time, the ratings agency has downgraded Rs4,980 crore worth of long-term debt of Reliance Home Finance to “CARE D”. In case of both Reliance Commercial Finance and Reliance Home Finance, CARE has cited the delays in servicing of instruments and stressed liquidity profile of the group as the rationale for these downgrades.
 
Just few days ago, ratings agencies like CARE Ratings and Brickwork Ratings had downgraded Reliance Commercial Finance, Reliance Capital and Reliance Home Finance. 
 
CARE further states that, they have factored in linkages between the companies and their parent Reliance Communications Ltd (RCom), which are in the form of RCom’s demonstrated track record of support to subsidiaries and strategic importance of the subsidiaries to its parent along with sharing of the brand name. The moderation in RCom’s profile has weakened these linkages as the parent is not in a position to extend adequate support to its subsidiaries, the ratings agency says.
 
Separately, ratings agency ICRA has also downgraded commercial papers worth Rs1,200 crore of Reliance Home Finance to “ICRA A4”. 
 
“ICRA A4” indicates that the instruments are considered to have minimal degree of safety regarding timely payment of financial obligations and that, such instruments carry very high credit risk and are susceptible to default. ICRA also cites the rational for such downgrade to incapability of Reliance Communications to support its subsidiaries given the slow pace of monetisation of the company’s non-core investments.
 
In a statement, a spokesperson for Reliance Commercial Finance stated, "RCFL has been affected by a timing mismatch in regard to the ongoing further securitisation or monetisation proposals with banks and the same has resulted in minor delay on principal repayments aggregating to only Rs477 crore to five-six banks, and limited only to its bank borrowings. RCFL expects to regularise all such repayments very shortly."

"RCFL has already completed securitisation of over Rs2,200 crore from 1 October 2018 till date, and is engaged in active discussions for further securitisation or monetisation of its asset base. RCFL is also completely current and regular on principal repayments on all its capital market borrowings aggregating Rs3,071 crore," the company added.

Similarly, in a statement, a spokesperson for Reliance Commercial Finance stated, "RHFL has been affected by a timing mismatch in regard to the ongoing further securitisation or monetisation proposals with banks and the same has resulted in minor delay on principal repayments aggregating to only Rs542 crore to around five-six banks, and limited only to its bank borrowings. RHFL expects to regularise all such repayments very shortly."

Reliance Commercial Finance says it has "already completed securitisation of over Rs5,500 crore from 1 October 2018 till date, and is also completely current and regular on principal repayments on all its capital market borrowings aggregating Rs7,708 crore."
 
According to a report from the Mint, several asset management companies (AMCs) like Reliance Nippon AMC, Aditya Birla Sun Life AMC, and DHFL Pramerica AMC have exposure in Reliance Commercial Finance; eight out of 13 schemes are fixed maturity plans (FMPs).
 
It is unclear how much debt held by mutual fund schemes has been individually affected by the downgrade, the report says. 
 
A spokesperson from DHFL Pramerica AMC told the Mint, “Our exposure to Reliance Commercial Finance is a structured transaction based on the credit enhancement offered by the Parent—Reliance Capital which is rated Care A. As such our structure also carries the rating of Care A (So). There is no change in the ratings of our instrument despite the change in rating of Reliance Commercial Finance on a stand-alone basis."
 
“Kotak Mutual Fund recently held back some of its FMP units against payments due from the Essel Group and HDFC Mutual Fund rolled over (extended) the maturity of one of its FMPs with Essel exposure. A surge of redemptions from some AMCs like DHFL Pramerica Mutual Fund has also caused their exposures to the troubled groups to breach SEBI limits. The Regulator has not initiated any penal action in this regard at this point of time,” the report added.
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    COMMENTS

    Sanjeev jain

    4 months ago

    He will make money in satta ,

    jignesh shah

    4 months ago

    always go thru intelligent and experience people never get lose and l discredit in the market

    Hudaf Shaikh

    4 months ago

    In wake of IL&FS default, most small HFCs and and NBFCs are facing challenges in raising funds - this has severely impacted availability of home loans for the needy and has squeezed many SMEs who don't have access to bank credit. Sadly, many larger well funded HFCs, instead of stepping up to fill the gap, are using this as an opportunity to scalp needy homebuyers -

    RBI needs to owe up responsibility and needs to immediately take corrective action by providing funding to smaller HFCs so as to increase the competition and prevent home buyers from being scalped by greedy HFCs.

    Pralhad Shewale

    4 months ago

    " ये तो होणाही था "

    Reshma Khanum Niyazi

    4 months ago

    Anil Ambani has his big b to rescue him from the debt...but wht about the general public who have trusted ur company & invested their hard earned money in Rcom ???

    PACL Refund Claims Can be Filed till 31 July 2019: SEBI
    The Justice RM Lodha (retd) Committee appointed in the PACL Ltd matter has decided to extend the last date for receiving claim applications till 31 July 2019.
     
    In a release, market regulator Securities and Exchange Board of India (SEBI) said, "...in view of representations received, the Committee has decided to extend the last date of receipt of applications to 31 July 2019 from 30 April 2019."
     
    In February this year, the Justice Lodha Committee had allowed investors to file refund claims online before 30 April 2019. 
     
    SEBI has created a separate website for accepting the claim forms from all investors of PACL who are seeking refund of their investment. To file the claim, the investor need to visit http://sebipaclrefund.co.in/ and submit her application. For submitting the claim, the investor needs to upload copy of her PAN card, latest passport size photo, copy of cancelled cheque, copy of PACL certificate and receipts, if any.
     
  • User

    COMMENTS

    Pranav kumar

    5 hours ago

    Pse extend the refund date

    Vijay Dubey

    14 hours ago

    Dear Sir

    Please exted pcl refound summited date


    Thank you

    Naga Raj

    17 hours ago

    Pls sir next date please

    Rohit Parekar

    1 day ago

    Respected Sir,
    Sir Please extend PACL refund Filling date... Pls sir pls 🙏

    Rohit Parekar

    1 day ago

    Respected Sir,
    Sir Please extend PACL refund Filling

    vikram dutt

    2 days ago

    please extend date ...noboday inform me about refund amount

    Lankey Rondo

    2 days ago

    Kab payment kar rahe ho authority please confirm me.

    Karthick Keyan Nfs

    2 days ago

    Next registered online date ???

    Pranav kumar

    3 days ago

    Pse. Sir extend the date

    Suman Priya Mascarenhas

    3 days ago

    I was not able to submit the application as i was getting error. What is the alternative options?

    Kunal Gaikwad

    3 days ago

    Respected Sir,
    Sir Please extend PACL refund Filling Because i have tried many time but it's found server busy. and even though i found that most of them not yet applied for PACL refund bcz of the network problem so i request you to plz extend.This is my humble request sir plz understanding the situation.

    Ravi Patel

    3 days ago

    Don't extend the please process
    As per last three extend nobody is taking seriously 😂 kindly process on priority basis it is urgent for marriage, student, doctor medicals...
    Pending only thouse people they don't have urgency

    Patel Pankajkumar

    3 days ago

    Payment status

    Pranav kumar

    3 days ago

    Pse extend the refund date

    Preet Hesh

    4 days ago

    Respected Sir,
    Sir Please extend PACL refund Filling Because i have tried many time but it's found server busy. and even though i found that most of them not yet applied for PACL refund bcz of the network problem so i request you to plz extend.This is my humble request sir plz understanding the situation.

    Investor Protection Fund recovers Rs1,514 crore of depositors' funds from Peerless
    The Investor Education and Protection Fund (IEPF) Authority has "successfully forced" the Peerless General Finance and Investment Company to transfer deposits worth about Rs 1,514 crore to IEPF, a statutory body under the ministry of Corporate Affairs.
     
    "In a major success, the IEPF Authority has been able to enforce The Peerless General Finance and Investment Company Limited to transfer deposits worth about Rs 1,514 crore to IEPF. The depositors' money was pending with the company for the last 15 years," said Finance Ministry. 
     
    "The matter came to the notice of the Authority recently and within a short time, due to the proactive action of the Authority, the said sum has now been transferred to IEPF", said the Ministry.
     
    "The data submitted by company reveals that 50.77 per cent of the total amount was taken in the form of deposit certificates valued at Rs 2,000 or less. Number-wise such certificates form 85.32 per cent of total number of certificates issued. The majority of these investors are common citizens belonging to lower and middle income group," it said in the statement.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    User

    COMMENTS

    Muthusamy K

    2 weeks ago

    Sir, Please extend the time atleast 15 days

    Muthusamy K

    2 weeks ago

    Sir, Please extend the time atleast 15 days.

    Wilter Suphai

    2 weeks ago

    Sir, please extend the date upto 2 months, because most of our people in rural areas, they have not applied before, so they are applying now for Pancards almost one month, please understand our problems and needs thanks you.

    Ajay Vishwakarma

    3 weeks ago

    Dear Sir,

    I am busy in my closing so that I am not upload same mendetory required docs.

    Iqbal Ahmad

    3 weeks ago

    Sir please pacl ka time aur bdha dijiye refund application ke liye kiyu ki kuch logo ke aadhar aur pan abhi nhe ban paye hai aur kuch loge saudi desho mai job kar rhe hai jo ki abhi ghar nhi aaye hai aur kuch case esse hai jo nabalig hai aur unke aadhar mai name aur date of birth rong hai ya aadhr mai kewal year hi mention hai jiske karan pan nhi bn paye aur adhar bhi nhi ban pa rhe hai aur iske liye ek lambi line bn jati hai aur number bhi nha aata hai aur roj roj line mai lagne se nokri jane ka bhi khatrabna rehta hai aadhar ke liye kafi chakkar lagane pdh rhe hai isliye aap se nevedan hai ki iski timing badha dijiye

    Mahavir Patel

    3 weeks ago

    Paisa kab milega sahi sahi infromation batao kab tak wapas hoga

    Devdatt Mahajan

    4 months ago

    how will the investors get the money? how will they trace these investors?

    Juliet DeSouza

    4 months ago

    Wish something could be done about Lloyds Finance whose FD investors suffered great losses.

    B. Yerram Raju

    4 months ago

    Good recovery.

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