RCap shares extend losses to third day, slip 12%

NEW DELHI: Shares of Reliance Capital suffered a strong loss of about 12 per cent in Tuesday's session and looked on course to extend the losing streak to the third consecutive session.

As per an ET report, Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) will seek to raise funds through the sale of fresh equity as holding company Reliance Capital is willing to cede ownership to new investors at the right price.

“We are in talks with international and domestic institutions as we expect an equity capital infusion within a month or two,” the report quoted Amit Bapna, CFO of Reliance Capital as saying so.


RHFL has a loan book of more than Rs 17,000 crore while that of RCFL is over Rs 16,000 crore — a mix of retail and corporate borrowings.

ET reported on Monday that the debt market may see a rise in borrowing costs as liquidity gets squeezed with key investors such as mutual funds holding back on investments in the wake of the downgrades of RHFL and RCFL debt instruments to junk and default status.

Mutual funds and non-banking finance companies (NBFCs) look concerned over possible adverse investor reaction to sharp downgrades of RHFL and RCFL debt instruments due to the financial status of the Anil Ambani-led Reliance Group.

A default by Infrastructure Leasing & Financial Services (IL&FS) in September last year sparked a liquidity crisis that hit NBFCs and the financial market has been jittery since then.

Shares of Reliance Capital closed 8.47 per cent down at Rs 132.85 on BSE.