I don’t know what they would update on. That they are terrible in money management and they are unlikely to recover anything back on their related party loans and guarantees? Things look pretty terrible for ADAG group. They have messed up big time in RCOM investment. And to cover that and buy some more time, they have messed up bigger by related party loans and guarantees. Now it is clear that RCOM is bankrupt. It is probably going to take Rpower, Rinfra and Rcapital with it because of huge loans in these entities. Rhome has no future as no one would believe Management capability of adag group. RNAM is the only light where no one would want to trust them with their hard earned money. Things looks very bad for this group as per my opinion.
Reliance Capita alleged that the invocation of Rs 400 crore worth of NBFC’s pledged shares by Edelweiss and L&T Finance was illegal, motivated and wholly unjustified.
Generally pledging is done using a contract and any corporate loan taker will know the condition under which pledge will be invoked and I am sure that there would be a notice provided to company based on certain rules. I don’t see why rel cap can’t go to court and argue for breach of contract if their claims are true. Have they filed a case against the lender for the same?
Better late than never! 
RCap current market cap ~ 4000 Cr
RNAM current market cap ~ 11,000 Cr
Is it fair to assume, if the deal goes through - RCAP will be able to get the cash of about 4000 Cr (42% of 11 K. Cr.) which it can use to repay the debt? I understand I am expecting the Ram-Rajya in Lanka but keen to understand extent of positive impact of this potential deal in case promoter’s intent is noble.
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This is like Anil Ambani saying he reached agreement in principal with lenders.
All talk to drive up share price so that he can do something and generate some cash to repay his creditors.
RNAM has ICD with anil ambanis other companies of some 500 or 1000cr so that will have to be deducted in the valuation. Simple his announcement has driven up the valuation of RNAM already by 20% today. Might go higher even tomorrow. So if nippon offer him lesser than market cap it will reflect poorly on RNAM. Im loving watching this genius (Anil) at work. Who said bear markets are bad. Bear markets are pure entertainment for those who arent investors in such companies/events.
On a serious note If nippon decide to buy them out then we could see something big take place in terms of both companies. RCAP and RNAM.
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Article on Moneycontrol in context of the query I posted on the thread yesterday.
Investing in ADAG group companies is no less than a roller coaster ride for past 12-18 months. RelCap is no exception. Phew, this overhang at least is out of the way. and good to see support from Mukesh. It will incline some positive sentiments towards ADAG companies include RCAP in short term. Hopefully the ADAG group has learnt its lessons and they will at least this time live by their commitment to bring down debt by 10,000-12,000 Crs. in next few months.
Nice article summarising current situation
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We are aware that reliance capital is getting bad day by day. I understand that based on numbers its quite possible and specially given the current state of ADAG companies. Do we see possible ways of its revival (Mukesh can help, which he did once)? If Reliance Capital goes bad way, I am interested in understanding its impact on services / brokerage services provided by Reliance Securities (Reliancesmartmoney.com).
RCOM went bad way & customers had option/forced to move to other service provider, In this case brokerage services of RCAP (Reliance Securities) will be in question.
i) How does it impact retail DEMAT account holders
ii) Will customers be forced to move away (its tougher than changing mobile operator)
iii) Is there any risk to long term holdings
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I think RCap will find buyers easily but I don’t think chhota bhai will be willing to let it go so soon. These are the only viable biz left in the pack
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Expecting Mukesh Ambani to help in liquidity crisis of reliance capital would be speculating. Reliance cap do have good quality assets which they need to monetize in time which they had not been able to do so far. Last year they were only able to achieve 1/3rd of what they had planned. They are in talks with Nippon to buy their stake in Reliance Nippon asset management, valuation would be the key for the deal.
Regarding demat account, u don’t need to worry as your demat accounts are provided by NSDL or CDSL, reliance money is only the intermediary/broker which u can always change easily
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Reliance Capital signs agreement to sell its stake in RNAM at approx 6000cr.
to use this money to bring down debt by 33%
Hi Can anybody throw light on RCap’s stake in Mahindra First Choice and Grover Zampa? What could be the present market value of these investments? Thanks
Reliance Capital to exit Radio Business to pare of the current debt
considering yesterday’s conference call where AA was trying to reassure the investors that things would get better, I have a feeling the stock has only one direction to go( down).
Reliance Big Entertainment is selling 14% stake in Codemasters for Rs.388 crores. RNAM stake sale, Big FM and now Codemasters… Happy to see something happening towards debt reduction. Expect stake sale in Prime Focus, Grover Zampa and Mahindra First Choice very soon…
Now would the fall today qualify for a “run” on a NBFC? Wondering if the Reserve Bank which is deemed to be the purveyor of NBFCs step in to stop the rout. Expect proposal for restructuring to be sent to the bankers (which would mean conversion of maturing debt to equity) any day by the AA group to salvage the equity left in the business.