Reliance Infra: Defaults yet again, asset monetization underway

On Monday after market hours, indebted Anil Dhirubhai Ambani Group (ADAG) group company Reliance Infrastructure Limited disclosed another default of interest. This is the third one of its kind by the company, reflecting the hardship it is facing in its operations as well as asset monetization plans.

There is default of interest amounting to Rs 29.55 crore, due on May 01, 2020, against an obligation of Rs 3,627.19 crore to Yes Bank, as stated in a press release submitted by the company. In the previous week, it had reported default of another interest obligation of Rs 4.88 crore, due on April 29, 2020 against a total principal amount of Rs 944 crore by the same lender. Other defaults reported over the last week included few other lenders such as Jammu and Kashmir Bank and SREI Equipment Finance etc., amounting to a total principal of Rs 102 crore.

Since the last several quarters, the group has been in the news due to its debt status, rating downgrade, default fears etc. As depicted by the last reported numbers of group companies such as Reliance Power, Reliance Infrastructure, Reliance Capital, they oblige a consolidated amount of Rs 40,285.42 crore in terms of long-term borrowings. The standalone debt of Reliance Infrastructure stood at a total of Rs 6,267 crore as on April 30, 2020.

Over the last two years, the stock has already lost nearly 95 per cent of its market value. On Tuesday at 12.25 am, it was trading at Rs 17.65 on BSE.