Anil Ambani says Reliance-ADAG has serviced debt over Rs 35,000 crore

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Published: June 12, 2019 2:38:28 AM

Ambani said over the past 12 months, retail shareholding across all companies remained uneroded and consistent, cementing his belief of the strong support and good wishes of all shareholders for the Reliance Group.

Anil Ambani says Reliance-ADAG has serviced debt over Rs 35,000 croreAnil Ambani says Reliance-ADAG has serviced debt over Rs 35,000 crore (File photo)

Reliance Group chairman Anil Ambani said on Tuesday that the Group has made aggregate debt servicing payments of over Rs 35,000 crore in the 14-month period from April 1, 2018 till May 31, 2019.

These comprise principal repayments of Rs 24,800 crore and interest payments of `10,600 crore. Speaking over a conference call, Ambani said that this amount included inter alia debt servicing payments by Reliance Capital Group, Reliance Power group and Reliance Infra Group, and their respective affiliates.

He added, these “payments have been made in the face of insurmountable odds and the most challenging financial environment witnessed in the country in decades”.

His statements come at a time when the share price of Reliance Group companies have come under stress over the past few weeks. Speaking about the same, Ambani stated, “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”.

Share price of seven Reliance Group companies have cumulatively fallen 24.4% in the last three months, according to Bloomberg data.

However, on Tuesday, after Ambani’s statements that the group is fully committed to meeting all future debt servicing obligations in a timely manner, through further asset monetisation plans at various stages of implementation, the share price of Reliance Group companies saw an uptick.

On BSE, Reliance Power was up 5.2% in intra-day trade and closed up 3.48% at `5.95, Reliance Infrastructure was up 4.4% intra-day and closed up 1.17% at `64.95, while Reliance Capital which was up 4.9% intra-day finally ended Tuesday’s trading session 2.96% up at `93.90.

Ambani said over the past 12 months, retail shareholding across all companies remained uneroded and consistent, cementing his belief of the strong support and good wishes of all shareholders for the Reliance Group.

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”.

He added that to compound matters, the regulatory bodies and courts have not passed any final adjudication orders on claims aggregating to over `30,000 crore that are due for more than 5-10 years to various group companies, especially Reliance Infrastructure Ltd and Reliance Power, and their affiliates. He said “final decisions have only been inordinately and repeatedly delayed for one reason or the other”.

Ambani said that the debt servicing payments of the aforesaid amount of over `35,000 crore have had to be made almost entirely from asset monetisation, and operational cash flows.

He stated that he was confident that with the support of all his colleagues in the Reliance Group, the journey undertaken to transforming the group to be capital light, bare minimal debt, and higher return on equity, will enhance value for all Reliance Group shareholders.

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