Reliance Capital slumps after delaying payment on NCDs

Reliance Capital hit a lower circuit of 5% to Rs 10.90 after the company said it delayed payment towards interest/principal on non-convertible debentures due on 9 December 2019.

The announcement was made after trading hours yesterday, 10 December 2019.

Meanwhile, the board of directors of the company at its meeting held on Tuesday, 10 December 2019, approved elevation of Amit Bapna, the existing chief financial officer (CFO) as president & chief operating officer (COO); appointment of Sachin Bora as chief executive officer (CEO) of the company; and appointment of Vaibhav Kabra as chief financial officer (CFO) of the company.

Further, Anmol Ambani, being related to chairperson of the company, ceased to be the executive director of the company, with effect from 10 December 2019.

Shares of Reliance Capital dropped 30.79% in eight trading sessions to its current market price of Rs 10.90 from its recent closing high of Rs 15.75 on Thursday, 28 November 2019.

Meanwhile, the S&P BSE Sensex was down 18 points or 0.05% to 40,221.74.

The stock hit an intraday high of Rs 11.60. It hit an intraday low of Rs 10.90, which is also an all-time record low for the counter. The stock hit a 52-week high of Rs 232.20 on 31 December 2018.

In the past one month, shares of Reliance Capital slumped 55.51% to its current market price of Rs 10.90, underperforming the Nifty Financial Service index's 0.86% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 22.137. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading below its 50-day moving average (DMA) placed at Rs 18.03, as well as below its 200 DMA placed at Rs 82.57.

On a consolidated basis, Reliance Capital reported a net loss of Rs 3,771 crore in Q2 September 2019 compared to net profit of Rs 280 crore in Q2 September 2018. Total income jumped 65.4% to Rs 8,860 crore in Q2 September 2019 over Q2 September 2018.

Reliance Capital is a diversified financial services holding company promoted by Reliance Anil Dhirubhai Ambani Group.

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