Reliance Capital falls 8% after CARE downgrades its long-term debt program

Shares of Reliance Capital on Monday dropped 8 per cent after CARE Ratings downgraded the company's long-term debt program.

The stock tanked 7.50 per cent to close at Rs 29 on the BSE. During the day, it cracked 11.32 per cent to Rs 27.80 -- its 52-week low.

On the NSE, it plunged 7.98 per cent to close at Rs 28.80.

In terms of the traded volume, 47.26 lakh shares were traded on the BSE and over three crore units on the NSE during the day.

CARE on Friday downgraded rating for the company's long-term debt program, market-linked debentures and subordinated debt to CARE D, due to the alleged "delay" in payment of interest by one day.

Meanwhile, Reliance Capital has slammed CARE Ratings for downgrading its debt and called actions by the rating agency "pre-meditated and prejudiced".

Reliance Capital said there was a delay in payment of interest for non-convertible debentures (NCDs) due to a technical glitch and the payment was made on the next working date.

It said CARE has acted in a pre-meditated and prejudiced manner, and has even suppressed the above facts completely in its rating action letter, thereby making it appear as if the company had defaulted in payment of interest by a day, whereas the reality is documents had been provided to CARE that proved funds had duly been arranged on the due date, and the alleged delay was on account of technical glitches.