ADAG stocks in red; exception RPower surges by 18% in today’s trade1 min read . Updated: 01 Oct 2019, 04:15 PM IST
- The Anil Dhirubhai Ambani Group has debt in excess of Rs90,000 crore amid shrinking cash flows
- Shares of Reliance Communications saw a sharp decline amid concerns over financial position of the company
Shares of all Anil Dhirubhai Ambani Group companies barring Reliance Power plunged today on concerns surrounding the continued viability of the group. The group has debt in excess of Rs90,000 crore amid shrinking cash flows.
Reliance Capital continued to fall today, ending down nearly 9%, after the company Chairman Anil Ambani said the company would exit its lending business. The company wants its insurance units to become long-term value creators, Ambani told shareholders at the company’s annual general meeting (AGM) on Monday. The stock ended at Rs22.45 today.
Ambani shared the company’s plan for its lending business at its annual general meeting on Monday and said its arm, Reliance Home Finance and Reliance Commercial Finance, are working closely with lenders to finalise a resolution plan, expected to be completed by December.
“Reliance Capital will be a financial shareholder in both companies to re-converge shareholder value under the new management and shareholding structure and effectively, debt of Reliance Capital will stand reduced by Rs25,000 crore," Ambani said.
Ambani also said the group is committed to making Reliance Power a “Future Green" company. With the chairman’s assurance, shares of Reliance Power surged by 18%, ending at Rs2.55 in today’s trade.
Shares of Reliance Communications saw a sharp decline amid concerns over financial position of the company and bleak possibility of finding an investor under the insolvency proceedings. In a first, the resolution professional of the company, appointed to oversee the debt restructuring of the company, chaired and addressed the shareholders at the AGM on Monday. The stock ended down nearly 7% at ₹0.70.
Reliance Infrastructure Ltd also continued to trade in the red, falling more than 5% at ₹28.05. Shares of the company were under pressure on Monday even after Ambani told investors that the company was on track to reduce the debt even further.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.