On Saturday, Indian banking and financial company, HDFC, stated that it has acquired a 6.43% stake in debt-trapped Reliance Capital by invoking shares that were pledged by the company against an HDFC loan. A regulatory filing, submitted by HDFC Ltd., stated that these shares which were pledged against a loan given by the lender in its normal course of business were obtained by a security trustee on behalf of the company.
Furthermore, the filing said that the company acquired 25.27 crore shares priced at ₹10 each, adding that the total value of these shares are ₹252 crore.
The filing concluded that the requisite disclosure had already been made on March 27, and since the shares have now been credited to the account of the Corporation, the disclosure was being made once again.
Shares of Reliance Capital had risen to ₹7.07 on BSE, securing it a gain of 4.90% over its previous close on Friday.
The shareholding data of Reliance Capital for Q3 of FY2019-20, showed the promoter holdings standing at 8,43,12,534 shares, or 33.51%. Of this, 6,82,15,242 shares, or 80.91%, of their holding were pledged against credit.
Responding to the stock exchanges on Friday, Reliance Capital had acknowledged that there has been a delay in debt servicing because of the prohibition on the company to dispose of, alienate, or directly or indirectly part with the possession of any assets, following a November 20, 2019 order passed by the Delhi high court. the debt recovery tribunal in High Court had passed the same order, pursuant to the proceedings, initiated by Vistra ITCL (India) Ltd.
“The company is unable to proceed with its asset monetisation resulting in delay in its debt servicing,” the company intimated, in a statement.
Reliance Capital had disclosed that its total financial debt stood at ₹19,115.22 Crore, which included accumulated interest, up to March 31, 2020. Out of this ₹653.23 Crore were from banks and financial institutions.
The company had defaulted on ₹4.77 Crore, in interest payment, to HDFC and ₹0.71 crore, to Axis Bank. It had borrowed around ₹523.98 Crore from HDFC Bank and ₹100.63 Crore from Axis Bank.