You are here: Home » Markets » News
Business Standard

Reliance Capital dips 9%, hits over 20-year low on ratings downgrade

Reliance Capital said the delay in payments -- the reason of rating downgrade -- was due to technical glitch in bank servers

SI Reporter  |  Mumbai 

stock market

Shares of Reliance Capital hit an over 20-year low of Rs 28.40, down 9 per cent on the BSE on Monday after Care Ratings downgraded the company’s debt programmes worth Rs 17,000 crore to 'D' on account of recent instance of delay in servicing of coupon on several non-convertible debentures (NCDs).

The stock was trading at its lowest level since March 19, 1999. It touched an all-time low of Rs 14.28 on August 17, 1990.

“The coupon was subsequently serviced with a delay of one working day. The liquidity profile of the group continues to be under stress on account of delay in raising funds from the asset monetisation plan and impending debt payments,” Care Ratings said in its rating rational. CLICK HERE FOR PRESS RELEASE

Reliance Capital, however, said the payments were delayed by a day due to technical glitch in bank servers.

Despite the company making a specific request in writing for a meeting with the Review Committee, and despite having allowed such meetings in the past, CARE did not allow the same in this instance, and went ahead and unilaterally completed the alleged review upholding the proposed rating action in the Company’s absence, Reliance Capital said. CLICK HERE FOR STATEMENT

Reliance Home Finance, Reliance Communications and Reliance Infrastructure are other individual stocks from the Anil Dhirubhai Ambani Group (ADAG) that slipped 5 per cent each and were trading at multi-year low levels on the BSE.

First Published: Mon, September 23 2019. 10:32 IST