Reliance Capital is not going to be in the lending business any longer, says Reliance Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani on September 30 while addressing its AGM. He said the move is part of the process of 'transforming' the young company.
Ambani said factors like rumour mongering and reckless selling in the last six months caused collateral damage in his NBFC. Calling it 'unfortunate', he said the true value of the business was not recognised, even as the company had increased the number of retail shareholders by 10 lakh.
Earlier in the day, shares of Reliance Capital touched a 52-week low of Rs 26.70 as it declined five percent intraday after the company said it had concluded sale of its stake in Reliance Nippon Life Asset Management to Japan's Nippon Life Insurance Company.
Reliance Capital received around Rs 5,500 crore ($785 million) by selling its stake. From these proceeds, the company in total made interest and principal repayments of Rs 72.65 crore on September 27 and September 30 on a range of instruments, including non-convertible debentures, term loans and inter-corporate deposits, a spokesperson for the company said.
Over the last 15 months, Ambani said, the company had repaid more than Rs 35,000 crore in debt. He claimed the company is going to repay an additional Rs 15,000 crore by March 2020, even though there is no funding.
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