Shares of Reliance Home Financeshed 7.3 percent in the early trade on July 1 after the company extended maturity on certain NCDs of Rs 400 crore.
The company in its press release dated June 29 said that in view of the continuing severe liquidity crisis in the sector, the maturity of certain NCDs of Rs 400 crore has been extended till October 31, 2019, with the formal written consent of the concerned Debenture Trustees and NCD holders.
Extension of maturities by mutual consent is a recognised global practice to deal with severe dislocations in capital markets, and does not in any sense constitute a default, it added.
The extension of maturity has been made purely to address timing mismatches in receipt of proceeds from the ongoing monetisation of retail asset pools of the company.
The company has already monetised over Rs 5,000 crore of retail assets, and will continue to do so to meet its debt servicing obligations, it further added.
However, the Company has made the payment of interest on secured redeemable non-convertible debentures on June 28.
At 0942 hours, Reliance Home Finance was quoting at Rs 11.15, down Rs 0.70, or 5.91 percent on the BSE.[“source=moneycontrol”]