Reliance Capital falls 8% after CARE downgrades its long-term debt program

Shares of Reliance Capital on Monday dropped 8 per cent after CARE Ratings downgraded the company's long-term debt program.

The stock tanked 7.50 per cent to close at Rs 29 on the BSE. During the day, it cracked 11.32 per cent to Rs 27.80 -- its 52-week low.

On the NSE, it plunged 7.98 per cent to close at Rs 28.80.

In terms of the traded volume, 47.26 lakh shares were traded on the BSE and over three crore units on the NSE during the day.

CARE on Friday downgraded rating for the company's long-term debt program, market-linked debentures and subordinated debt to CARE D, due to the alleged "delay" in payment of interest by one day.

Meanwhile, Reliance Capital has slammed CARE Ratings for downgrading its debt and called actions by the rating agency "pre-meditated and prejudiced".

Reliance Capital said there was a delay in payment of interest for non-convertible debentures (NCDs) due to a technical glitch and the payment was made on the next working date.

It said CARE has acted in a pre-meditated and prejudiced manner, and has even suppressed the above facts completely in its rating action letter, thereby making it appear as if the company had defaulted in payment of interest by a day, whereas the reality is documents had been provided to CARE that proved funds had duly been arranged on the due date, and the alleged delay was on account of technical glitches.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel