Mumbai: Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) on Saturday said they have commenced discussions with several parties for equity infusion accompanied by acquisition of complete management control.
The two companies in their statements issued here said discussions have commenced with several potential strategic/PE (private equity) partners for equity infusion into the business, accompanied by acquisition of complete management control.
Reliance Capital Ltd, the present sponsor of RHFL and RCFL, will continue as a minority financial investor as it sees long-term upside in the sectors, upon restoration of normalcy and a more supportive and conducive environment, the statements said.
According to RHFL, it has already completed securitisation of over Rs 5,500 crore from October 1, 2018 to date, and is engaged in active discussions for further securitisation/ monetisation of its asset base.
RHFL is completely current and regular in servicing interest on its entire debt as on date.
The company is also completely current and regular on principal repayments on all its capital market borrowings aggregating Rs 7,708 crore.
“RHFL has been affected by a timing mismatch in regard to the ongoing further securitisation/ monetisation proposals with banks, etc., and the same has resulted in minor delay on principal repayments aggregating to only Rs 542 crore to around 5-6 banks, and limited only to its bank borrowings. RHFL expects to regularise all such repayments very shortly,” the statement said.
The company said for the past seven months, ever since the IL&FS episode, all categories of lenders in India, including banks, mutual funds and others, have put an almost complete freeze on additional lending to housing finance companies and non-banking finance companies.
The lenders have been insisting upon reduction of existing borrowings and are willing to securitise the existing asset pools, RHFL said.
On its part, the RCFL said it has already completed securitisation of over Rs 2,200 crore from October 1, 2018 to date, and is engaged in active discussions for further securitisation/ monetisation of its asset base.
RCFL is completely current and regular in servicing interest on its entire debt as on date. The company is also completely current and regular on principal repayments on all its capital market borrowings aggregating Rs 3,071 crore.
According to the statement, RCFL has been affected by a timing mismatch in regard to the ongoing further securitisation/ monetisation proposals with banks and others and the same has resulted in minor delay on principal repayments aggregating to only Rs 477 crore to 5-6 banks, and limited only to its bank borrowings.
RCFL expects to regularise all such repayments very shortly, the statement said.