Reliance Capital share fell 3% today after the Anil-Ambani led firm defaulted on interest on loans from HDFC and Axis Bank. The micro cap share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
Market cap of the firm fell to Rs 237 crore. Reliance Capital share has lost 37.62% in one year and fallen 36% since the beginning of this year.
The stock fell 4.94% to Rs 9.23 against previous close of Rs 9.71 on BSE.
Reliance Capital has defaulted on interest payments on loans worth Rs 624 crore drawn from Housing Development Finance Corporation (HDFC) and Axis Bank, the company said on November 27, 2020.
In terms of interest payment, Reliance Capital defaulted on Rs 4.77 crore to HDFC and Rs 0.71 crore to Axis on October 31.
Reliance Capital borrowed term loans from HDFC for six months to seven years at 10.6 per cent and from Axis for three to seven years for 8.25 percent.
"The company is unable to proceed with asset monetisation resulting in delay in debt servicing, due to prohibition on the company to dispose of, alienate, encumber either directly or indirectly, or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues, pursuant to order dated November 20, 2019, passed by the Delhi High Court, and orders dated December 3, 2019, and December 5, 2019, passed by the Debts Recovery Tribunal, Mumbai and order dated November 4, 2020, passed by the Bombay High Court," Reliance Capital said.
Reliance Capital defaults on HDFC, Axis Bank loans
Meanwhile, Reliance Capital's total indebtedness including short-term and long-term debt stood at Rs 20,077.14 crore as on October 31, 2020.
In Q2 of the current fiscal, Reliance Capital reported -fold widening of its consolidated net loss to Rs 2,577 crore against net loss of Rs 96 crore in the quarter ended September a year ago.
The loss in the quarter under review was also higher as compared with Rs 1,095 crore loss in June quarter of this fiscal.
Consolidated income fell to Rs 4,929 crore in Q2 against Rs 5,064 crore in the year-ago quarter. Total expenses in Q2 fell to Rs 7,183 crore against Rs 9,042 crore expenses in the corresponding quarter of last year.