Ambani pointed out during last 14 months, lenders from all categories had provided zero net additional liquidity or debt to any entity of the Reliance Group
Reliance Group has met debt servicing obligations of Rs 35,000 crore in 14 months starting April 1, 2018, said Chairman Anil Ambani in a media conference call on June 11.
This concall comes in the wake of "rumour mongering, speculation, and bear hammering" of all Reliance Group companies shares over the last few weeks. Ambani said that had “caused grave damage” to all the stakeholders.
Giving a further breakdown of payment from April 1, 2018, to May 31, 2019, Ambani said Rs 25,000 crore had been paid towards principal leading to overall debt reduction and Rs 10,000 crore towards interest payments.
Ambani said the company disclosed that the debt servicing payments of Rs 35,000 crore had been made almost entirely from asset monetisation despite a liquidity-starved environment and operational cash flows in an operating environment beset by procedural and regulatory hurdles.
He said this amount included debt servicing payments by Reliance Capital Group, Reliance Power group, Reliance Infra Group, and their respective affiliates.
Ambani pointed out that, during the last 14 months, lenders from all categories - whether banks, mutual funds, insurance companies, provident funds or NBFCs - had provided zero net additional liquidity or debt to any entity of the Reliance Group.
Giving assurance, Ambani said, “We are fully committed to meet future debt servicing obligations in a timely manner through further asset monetisation plans.”
Blaming regulatory institutions and courts, Ambani said that there had been delay in passing verdicts which had kept the group from receiving dues of over Rs 30,000 crore.
“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 Group companies, especially Reliance Infrastructure Ltd. and Reliance Power Ltd., and their affiliates," said Ambani. He added that final decisions had only been inordinately and repeatedly delayed for one reason or the other.He concluded the call by affirming that Reliance Group was committed to transformation and became capital light with bare minimal debt and higher return on equity.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.