Reliance Capital, R-Infra locked in lower circuit for seventh straight day

On November 15, YES Bank had invoked around 16 lakh equity shares of Reliance Capital, owned by promoter Reliance Inceptum Private Limited

Shares of Anil Ambani-led Reliance Group companies - Reliance Capital and Reliance Infrastructure - were locked in lower circuit for the seventh straight day, after lenders invoked pledged shares of these companies.

Reliance Capital was locked in the 5 per cent lower circuit at Rs 18.05 on Wednesday after the company said that YES Bank had invoked around 16 lakh equity shares of the company owned by promoter Reliance Inceptum Private Limited. The stock has tanked 30 per cent in the past seven trading days.

“On November 15, 2019, the lender YBL invoked 1.6 million equity shares representing 0.63 per cent of total promoter holding of Reliance Capital,” the Anil Ambani-led company said in a regulatory filing. After this, the total promoters holding in Reliance Capital has been reduced to 39.65 per cent from 41.52 per cent, it said.

In September, CARE Ratings had downgraded Reliance Capital's bonds to 'D' from 'BB', citing a one-day delay in coupon payments on several non-convertible debentures and stress in the group's liquidity position. The liquidity profile of the group continues to be under stress on account of delay in raising funds from the asset monetization plan and impending debt payments, the rating agency said.

Meanwhile, on Tuesday, November 19, the non-banking financial company (NBFC) in a press release said, the payment interest/ principal obligations on the non-convertible debenture due on November 18, 2019, had been delayed.

Reliance Infrastructure was also locked in 5 per cent lower circuit at Rs 33.25 today. It has fallen 29 per cent in seven days after the lenders invoked 35 lakh shares in the past three trading days. Total promoters holding in the company has declined to 37.78 per cent as on November 18, 2019. They held 39.69 per cent stake at the end of September quarter.