Shares of Reliance Capital fell over 11 percent on Tuesday after the rating agency ICRA has revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.
At 11:40 am, Reliance Capital was trading at Rs 133.7 per share, down 8 percent on BSE, while Reliance Home Finance slipped 13 percent to Rs 24.65. In comparison, the S&P BSE Sensex was trading at 38,911, down 0.4 percent (155 points).
According to news reports, the company is also looking to raise funds by selling up to 51 percent stake in its non-banking financial companies — Reliance Home Finance and Reliance Commercial Finance as well as in two media companies — Codemasters and Prime Focus.
Reliance Home Finance also tanked over 18 percent on this report.
“The ratings continue to be on watch with negative implications,” said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital’s non-core investments (non-financial services businesses) and consequently no improvement in liquidity.
In addition, the liquidity of key operating subsidiaries Reliance Commercial Finance and Reliance Home Finance also remains stretched as was earlier highlighted in rating rationale whereby the debt repayments in the next six months are higher than scheduled inflows, it said.