Reliance ADAG AGM HIGHLIGHTS: Shares of ADAG Group Company Reliance Capital fell to 20 years low after Anil Ambani announced that the company will no more continue with the lending business. In the AGM of ADAG Group companies today, Anil Ambani said that the group is committed to grow its portfolio with solar, wind, biomass, biogas and waste-to-energy in the renewable energy space, making Reliance Power a “Future Green” company. He addressed the shareholders of Reliance Infra, Reliance Capital, Reliance Power, and Reliance Home Finance at the auditorium of KC College. In a unique event, the shareholders of Reliance Communications were addressed by a resolution professional, not Group Chairman Anil Ambani.
Reliance ADAG AGM HIGHLIGHTS: R-Capital stock falls to lowest in 20 years after Anil Ambani exits loan biz
Shares of ADAG Group Company Reliance Capital fell to 20 years low after Anil Ambani announced that the company will no more continue with the lending business.
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This article was first uploaded on September thirty, twenty nineteen, at two minutes past nine in the morning.
Commotion reigned at Reliance Power Ltd.’s AGM even as Chairman Anil Ambani claimed that the company is among India’s Top-3 private power generation firms. After Ambani’s speech, a shareholder claimed that he has lost money due to the debt troubles at Reliance Power. He said he is contemplating to file a class action suit against the Reliance Group.
A mismatch in asset management is one of the reasons for defaults, Reliance Home Finance Ltd ‘s CEO Ravindra Sudhakar said at the company’s AGM in Mumbai today. “Loan given to the non-housing sector were more than housing loans,” said Sudhakar, adding that cost of borrowings from banks has gone up significantly.
Reliance Capital has two credit verticals -- Reliance Commercial Finance and Reliance Home Finance -- with a cumulative asset of over Rs 25,000 crore. This is the second major business that the Anil Ambani-led group is exiting after its once flagship Reliance Communication was shuttered two years ago and is now under the bankruptcy process. Its defence business -- Reliance Naval -- is also under severe financial stress.
NCLAT has recently refused to entertain a plea moved by the resolution professional of R Com seeking refund of nearly Rs 580 crore from Ericsson India. Instead, he was asked to approach the Mumbai bench of NCLT. The RP of the company had approached NCLAT with a plea stating that since RCom was now under Corporate Insolvency Resolution Process, the money that it had given to Ericsson as a part of the settlement deal should now be returned to the company as Ericsson was only an operational creditor. RCom had paid a sum of Rs 577 crore to Ericsson India following a judgment of the Supreme Court in which the company’s promoter Anil Ambani had been held guilty of contempt of court.
The resolution professional of RCom moved to the National Company Law Tribunal (NCLT) against the Department of Telecommunications (DoT) seeking the status quo on spectrum licences. The RP sought protection from the DoT cancelling its spectrum licences. The spectrum licences are some of the key assets of the Anil Ambani group’s defunct telecom company, which is going through the insolvency process. The DoT had issued a show-cause notice to RCom in March 2019 for non-payment of dues on these licences.
Barney was in RCom’s leadership post for the last three years. While resigning, he wrote, “With GCX’s recent voluntary Chapter 11 filing, it will be in the best interest of both RCOM and GCX for me to step down at this time to focus on GCX restructuring. Upon emergence from this process, GCX expects to be well-positioned to aggressively pursue our business plan independent of the overhang caused by our corporate parent’s challenge."
RCom is undergoing insolvency process , buckling under a debt of Rs 46,000 crore . It’s resolution professional -Deloitte has been allowed an extended time till January to complete its insolvency resolution plan.
Bill Barney, CEO of Reliance Communications (RCom), had resigned from his post earlier this month. Barney will instead focus on the corporate restructuring of Global Cloud Xchange (GCX), an RCom subsidiary which recently filed for bankruptcy protection in a US court.
Reliance Communication has been struggling with liquidity crisis for a long time. Ericsson petitioned for RCom’s bankruptcy in September 2017 over non-payment of dues worth over Rs 1,500 crore. The bankruptcy court admitted the petition but, under RCom’s appeal, the National Company Law Appellate Tribunal stayed the order and a settlement was chalked out with Ericsson.
In another setback, Brickwork Ratings downgraded the rating to D for Reliance Home Finance Ltd's long-term debt programme, MLDs, subordinated debt, NCDs public issue, upper Tier-II NCDs and short-term debt programme. Brickwork had stated this action is primarily due to non-payment of Commercial Paper.
Reliance Home Finance had said that the company considers the above rating action untimely and uncalled for, specifically since it is working on the resolution plan. In June, Reliance Home Finance had said that maturity of certain NCDs of Rs 400 crore has been extended till October-end in view of the continuing severe liquidity crisis in the sector. The decision had the formal written consent of the concerned debenture trustees and NCD holders.
CARE Ratings has recently downgraded Anil Ambani-led Reliance Home Finance long-term debt programme, market-linked debentures, subordinated debt, non-convertible debentures (NCDs) and upper tier-11 NCDs to 'D' due to delay in servicing of principal on one of the NCDs.
The last AGM of Anil Dhirubhai Ambani Group Company Reliance Home Finance was held on September 18, 2018. The book closure for the company was from September 15, 2018 to September 18, 2018.
Shares of Anil Ambani-led Reliance Home Finance are trading 5% lower at Rs 3.81 on BSE. As per schedule, Anil Ambani is addressing the shareholders Reliance Home Finance. Following this, the Resolution Professional will address the AGM of Reliance Communication at 4.00 pm.
Check live stock price: Reliance Home Finance
After the AGM of Reliance Power, Group chairman Anil Ambani is now addressing the AGM of Reliance Home Finance. This is the last AGM, he will be addressing today. Later, AGM of Reliance Communications will be addressed by Resolution Professional.
In keeping with the Group’s DNA i.e. “converting every adversity into an opportunity”, Reliance Power has successfully converted the challenge facing the stranded gas-based asset at Samalkot into an opportunity in Bangladesh and the company is now focussing on the development of Phase-II of 1500 MW in Bangladesh, in line with the MoU signed for 3000 MW gas-based projects, sai Anil Ambani.
Anil Ambani said that they have signed PPAs and Gas Supply Agreements for 750 MW gas based generation plant in Bangladesh with a capital outlay of over Rs. 5000 Crores. The company has also signed a JV agreement with JERA, the largest Power utility in Japan. He reassured that the focus now is on the development of Phase-II of 1500 MW in Bangladesh, in line with the MoU signed for 3000 MW gas-based projects and with these developments, the company will be able to completely retire the US EXIM debt of about Rs 2400 crores.
Anil Ambani said that the group is committed to grow our portfolio with solar, wind, bio-mass, bio-gas and waste-to-energy in the renewable energy space, making Reliance Power a “Future Green” company. Reiterating the commitment to cleaner and greener power by reducing emissions, Reliance Power has announced to undertake a capex of nearly Rs. 4,000 Crores to install FGDs in its coal-based plants.
During the address of AGM of Reliance Capital, Anil Ambani said that the 3960 MW Sasan UMPP is the country’s largest integrated power plant with 18 MT of coal production has consistently ranked as the best performing plant in its category over the last 4 years.
The focus on operational excellence and delivering 'Best-in-Class' performance is amply demonstrated by its operating portfolio – by achieving close to 80% PLF, compared to the national average of about 60%for the year ending March 2019, said Anil Ambani.
Talking about the roadblocks faced by power companies in India, Anil Ambani said, "All generation assets are built on the 3 strong pillars of fuel security, off-take security & payment security; making it a unique portfolio insulated from the common risks plaguing the power generation sector in the country."
Reliance Power is amongst India’s top 3 leading private power generation companies with an operating portfolio of about 6000 MW, says Anil Ambani.
Bangladesh has recently signed an agreement to buy 718 megawatts of electricity from India's Reliance Power over the next 22 years. Reliance plans to invest about $1 billion to set up a local plant by 2022 to provide the electricity and the plant will be built at Meghnaghat in Narayanganj, over 20 km southeast of the capital Dhaka, according to Reuters.
After the Group Chairman Anil Ambani announced to exit the lending business, shares of Reliance Capital Limited had a sharp fall, pulling down the share price to a low of two decades.
Reliance Capital will only be a financial shareholder in Reliance Commercial Finance and Reliance Home Finance to reconverge shareholder value under a new management and shareholding structure and effectively reduce the debt of Reliance Capital Group by Rs 25,000 crore.
In a rare event for any major companies, a resolution professional will chair and address the shareholders of the Anil Ambani-run bankrupt Reliance Communications at the annual meeting with shareholders.
Reliance Capital total investment in the life insurance business was Rs 3,000 crore. Reliance has achieved infinite rate of return in this business from 100% by selling 49% stake in two phases to its partner Nippon Life Insurance of Japan.
Reliance Capital will no longer be in the lending businesses. Both the lending businesses - Reliance Commercial Finance and Reliance Home Finance, between the two, have an asset base of over Rs 25,000 crore. RCF and RHF are working closely with lenders to finalise the resolution plan which is expected to be completed in the next few months by December 2019. Reliance Capital will only be a financial shareholder in both these companies to reconverge shareholder value under a new management and shareholding structure and effectively reduce the debt of Reliance Capital Group by Rs 25,000 crore.
ADAG Group Chairman Anil Ambani will soon start to address the Annual General Meeting (AGM) of Reliance Power at KC College, Mumbai. Reliance Power has recently signed a pact to induct Japanese utility JERA as a partner for the 750 MW-gas based combined cycle power project it is setting up in Bangladesh.
In the AGM address, Anil Ambani said that Reliance Infrastructure’s all four businesses are fully funded and Engineering & Construction, and Defence businesses will remain `Asset & Capital Light’ without need for any large capital outlays
It was announced in the AGM of Reliance Infra that the Defence business JVs are operational with factories located in Mihan, Maharashtra.
Reliance Infrastructure’s Engineering & Construction business is amongst top 3 E&C companies in the country, which has won many prestigious projects like Rs 7,000 crore Versova-Bandra Sea Link project & 2,400 MW Kudankulam nuclear power project, said Anil Ambani. Reliance Infrastructure’s all four businesses fully funded. Growth engines - Engineering & Construction, and Defence businesses will remain `Asset & Capital Light’ without need for any large capital outlays, he added.
Shares of Anil Ambani-led Reliance AGAG firms RPower, RInfra extended decline amid the ongoing AGM on Monday afternoon. RInfra shares plunged 14% to hit the day's low at Rs 28.70, while RPower shares are trading 8% down at Rs 2.23 on BSE. Anil Ambani is addressing the shareholders of Anil Dhirubhai Ambani Group (ADAG) group companies today. He will be addressing the shareholders Reliance Power at 12:30 pm and Reliance Home Finance at 1:45 pm.
Reliance Infrastructure transformed into four successful businesses of Power Distribution, Transportation comprising Highways, Metro and Airports, Engineering & Construction (E&C), and Defence, Group Chairman Anil Ambani said in the AGM.
Talking about the Mumbai Metro line, Anil Ambani said that the Mumbai Metro is running between the corridor of Versova-Andheri-Ghatkopar has completed 5 years carrying over 54 crore commuters with zero accident and zero fatality.
Delhi Distribution Business of Reliance Infrastructure more than twice as big as erstwhile Mumbai Power Distribution Business and self-sustaining with EBITDA over Rs 3,000 crore. Company’s Roads portfolio comprises 11 roads with over Rs 6,500 crore invested.
Anil Ambani said that in the AGM that in less than four months, Finance Minister Nirmala Sitharaman has announced her signature style by big, bold ideas and quick, decisive action and the recent reforms have given India’s entrepreneurs a huge vote of confidence and a defining role in shaping the nation’s future.
Praising the government for its efforts towards taking India to the path of growth, Anil Ambani said that with BJP-led govt in most of India’s 28 states, it hopefully guarantees a seamless transmission of policies and priorities that will drive PM Narendra Modi's dream of turning India into a $ 5 trillion economy by 2024.
Reliance Group has repaid over Rs 35,000 crore in the 14 months till May 2019 and will be paying another Rs 15,000 crore till March 2020 aggregating to over Rs 50,000 crore. Anil Ambani said that this is perhaps is the largest repayment by any corporate group in these times with zero funding from any bank.
In the last 6 months, Reliance Capital has suffered collateral damage due to combination of factors - crisis in the Financial Services sector, irrational action by Auditors & Rating Agencies, or now recognized temporary slowdown of Indian economy, Anil Ambani underlined. Reckless selling and rumor-mongering by vested parties have affected the general public psychology, especially of shareowners, he added. However, he said that it is heartening that over the last 6 months, the number of retail shareholders has increased by over 10 lakh clearly signaling their strong support and long trust in the group companies.