Reliance Group meets Rs 35k cr debt service obligation
Mumbai, June 11 (IANS) Rebutting rumours about the financial health of Reliance Group, its Chairman Anil D. Ambani on Tuesday said the Group has met debt servicing obligation of Rs 35,000 crore during the period from April 1, 2018 to May 31, 2019.
According to him, the debt servicing component comprises of principal repayments of Rs 24,800 crore and interest payments of Rs 10,600 crore.
Ambani told the media that the debt servicing payments of over Rs 35,000 crore have necessarily had to be made almost entirely from asset monetisation and operational cash flows.
He regretted the apathy and lack of support from the financial system, which he said ultimately only significantly hurt the interests of lenders themselves as well as all other stakeholders.
The Reliance Group Chairman said that unwarranted rumour mongering, speculation, and bear hammering of all Reliance Group companies' shares over the last few weeks "has caused grave damage to all our stakeholders".
He said he was anguished and deeply concerned for the Group's over 70 lakh strong retail shareholders base. However, it was comforting for him to know that over the past 12 months, retail shareholding across all companies remained uneroded and consistent.
Speaking on the debt service obligation, the Reliance Group Chairman said the payments have been made in the face of insurmountable odds and the most challenging financial environment witnessed in the country in decades.
Ambani pointed out that during this entire period, lenders from all categories -- banks, mutual funds, insurance companies, provident funds or NBFCs -- provided zero net additional liquidity or debt to any entity of the Reliance Group.
He said that to compound matters, the regulatory bodies and courts have not passed any final adjudication orders on claims aggregating to over Rs 30,000 crore that are due for more than 5-10 years to various Reliance Group companies, especially Reliance Infra and Reliance Power and their affiliates.
Ambani also said that final decisions were inordinately and repeatedly delayed for one reason or the other.
He added that the journey undertaken for transforming the Reliance Group to be capital light, have bare minimal debt and higher return on equity, will enhance value for all its shareholders.