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Reliance Capital to raise Rs 10,000 crore in current fiscal by selling assets

File photo. Photograph:( Reuters )

AFP New Delhi, Delhi, India May 18, 2019, 10.57 PM (IST)

Cash-strapped Reliance Capital Saturday said it expects to raise Rs 10,000 crore by selling assets and cut down its debt by about 50 per cent in the current fiscal.

The company has been working diligently to ensure timely debt repayments and is regular in all its debt payments, Reliance Capital said in a statement.

The company's asset monetisation plan is on track, it said, adding, it is in the process of monetising its entire 42.88 per cent stake in Reliance Nippon Life Asset Management Limited, which at current market price is valued at over Rs 5,000 crore.

It has also announced its plans to monetise 49 per cent stake in Reliance General Insurance Company and the DRHP has recently been filed with the Securities and Exchange Board of India (Sebi).

The company is at an advanced stage of monetisation of several of its non-core investments, the statement said.

"Based on the above, the company expects to realise minimum proceeds of over Rs 10,000 crore, and sharply cut its overall debt by more than 50 per cent within the current financial year," it added.

The Anil Ambani-group company also expressed disagreement with rating agency Care, which downgraded its ratings for long-term debt programme, market-linked debentures and subordinated debt.

"There has not been any adverse change in the company's operational parameters and/or any other circumstances from the time of the last rating action, just 4 weeks ago and hence latest revision is completely unjustified," it said. 

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The company has been working diligently to ensure timely debt repayments and is regular in all its debt payments, Reliance Capital said in a statement.