InvestorQ : Is it true that Reliance Capital is planning to monetize its assets aggressively?
Juvina Maggie made post

Is it true that Reliance Capital is planning to monetize its assets aggressively?

Answer
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diksha shah answered.
4 weeks ago


Under pressure from its debenture holders, beleaguered Reliance Capital of the Anil Ambani group has started the process of asset monetization. This was necessitated after its recent default on payments to debenture holders, which constitute 99% of RCAP’s debt.

In a bid to reduce its debt and repay its debenture holders, Reliance Capital will look to monetize its stake in Reliance Securities, Reliance Health and Reliance General Insurance. Reliance Capital also has holdings in Reliance ARC, which it will look to monetize.

The monetization will be done in such a way that potential buyers or will be allowed to either bid for a controlling shareholding of Reliance Capital, as the holding company, or they can buy individual assets of group companies in a piece meal fashion.

Reliance Capital has an outstanding debt of Rs.15,000 crore and its principal creditors include EPFO and LIC. The current lenders to Reliance Capital have already entered into an Inter-Creditor Agreement or ICA for resolution of these stressed exposures.