Reliance Infra Dramatically Reduces Debt

18 Sep 2024 , 11:46 AM

Reliance Infrastructure Limited (Reliance Infra) reported on Wednesday that the Anil Ambani-led company has significantly reduced its standalone foreign debt, lowering it from Rs 3,831 crore to Rs 475 crore.

The company’s share price moved significantly, trading at Rs 252.15 per share on the Bombay Stock Exchange (BSE), up 7% as of 10.15 a.m. on September 18.

The Mumbai-based company reported that one of its lenders, Invent Assets Securitisation and Reconstruction Private Limited (Invent ARC), has novated certain charged securities to recover its debts, resulting in a total decrease of Invent ARC’s fund-based outstanding amount to zero.

Reliance Infra further revealed that it has fully paid its financed outstanding debts to important financial institutions such as Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and several other lenders. This huge debt decrease represents a significant milestone for the organisation.

Furthermore, Reliance Infra entered into a One Time Settlement (OTS) with the Life Insurance Corporation of India (LIC) to pay all obligations related to the Company’s Non Convertible Debentures (NCDs) for Rs 600 crore.

Furthermore, it stated that the business has satisfied and paid its whole obligation to Edelweiss in relation to the NCDs issued by the company, in the sum of Rs 235 crore.

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