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RCap cracks 4%, extends losing run into second day

The Anil Ambani group-run company, which is sitting on a debt of over Rs 18,000 crore, has also lined up a few more non-core assets to monetise, including a stake sale in Prime Focus and other media assets.

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Last Updated: Mar 07, 2019, 03.50 PM IST
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"The company considers the rating action completely unjustified and inappropriate," Reliance Capital said in a regulatory filing.
Shares of Reliance Capital cracked 4 per cent in morning trade on Thursday, extending the losing run into the second consecutive session, after the company said it will monetise its entire 43 per cent stake in Reliance Nippon AMC.

The company today said that it is hopeful of paring its debt by around Rs 12,000 crore over the next three to four months, by when it expects to complete the stake sale in Reliance Nippon Life Asset Management andReliance General Insurance.

The Anil Ambani group-run company, which is sitting on a debt of over Rs 18,000 crore, has also lined up a few more non-core assets to monetise, including a stake sale in Prime Focus and other media assets.

"This substantial 50-60 per cent reduction in our debt will be achieved by monetisation of 43 per cent stake in Reliance Nippon and 49 per cent stake in Reliance General Insurance, along with several non-core investments," the company said in a statement.

Rating agency Icra had downgraded the short-term programme of Reliance Capital by a notch to A1 on Tuesday due to delay in monetising non-core investments.

The agency has downgraded the rating with negative implications outlook and said that this action is primarily due to refinancing risk of short-term maturities and delay in monetising the noncore investments.

"The company considers the rating action completely unjustified and inappropriate," Reliance Capital said in a regulatory filing.

The company said that the rating agency arbitrarily refused to provide the company with an opportunity to meet the members of the Review Committee and address any concerns, thereby turning the entire review process prescribed by the Sebi into a futile, pointless and unfair exercise.

Shares of the company closed 1.39 per cent down at Rs 187.45 on BSE.
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