Market

Reliance Capital continues downtrend as firm loses control of insurance arm

Updated : November 20, 2019 10:34 AM IST

Shares of Reliance Capital closed at Rs 19 on Tuesday and the stock opened at the day's low of Rs 18.05 on the BSE on Wednesday.

So far this year, the stock has fallen over 92 percent.

The stock has been losing for the last 7 days and has fallen 30 percent during the period.

Reliance Capital continues downtrend as firm loses control of insurance arm

Reliance Capital shares were locked in 5 percent lower circuit on Wednesday, quoting at Rs 18.05 apiece, as the Anil-Ambani-led firm lost control of its wholly-owned insurance subsidiary, Reliance General Insurance Company Ltd.

The shareholding has been transferred upon invocation of the pledge by the IDBI Trustee Services, Reliance Capital said in a stock exchange filing on Tuesday.

"The trustee has purported to act on behalf of two parties claiming against the company under certain guarantees, while another lender has filed a suit in the Hon'ble High Court of Bombay, claiming inter alia that the aforesaid shareholding in RGIC comprises security for all secured lenders of the company, and the matter is presently sub-judice," it said.

"The company has already been engaged in efforts to monetise its shareholding in RGIC as part of its overall plans for debt reduction," it added.

The company also said that it will take all appropriate steps in the matter as legally advised to protect the interests of its lenders and other stakeholders.

Shares of Reliance Capital had closed at Rs 19 on Tuesday while the stock opened at the day's low of Rs 18.05 on the BSE today. The stock has been losing for the last 7 days and has fallen 30 percent during the period.

So far this year, the stock has fallen over 92 percent. The company's market capitalisation stands at around Rs 455 crore.

Meanwhile, the Sensex traded nearly 150 points higher above the 40,600 mark. The Nifty was trading slightly below the 12,000 mark.

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