LIST OF 10 BIGGEST CORPORATE HOUSES IN INDIA WHO OWES NEARLY 5 LAKH CRORES TO THE VARIOUS INDIAN BANKS.
RELIANCE GROUP (ANIL DHIRUBHAI AMBANI)
Anil Dhirubhai Ambani group tops the billion dollar list debt list with Rs. 1,24,956 crore of loans to the Indian Banks and it has an annual interest liability to the tune of Rs. 8,299 crore against the yearly earning of Rs. 9,848 (before income tax) and according to the sources, some of the group’s firms like Reliance Infrastructure and Reliance Defence, don’t even earn enough to service the interest outgo.
Against the 1,24,956 loans, the Reliance Group has the assets worth Rs. 60,000 for sale which includes, about 44,000 telecommunications towers (valued at Rs 22,000 crore) and optic fiber and related infrastructure (Rs 8,000 crore) from Reliance Communications (RCom), its flagship firm. Weighed down by about Rs 40,000 crore of debt, RCom has posted a loss of Rs 154 crore in FY14-15, and has continued to post losses in the first three quarters of FY 15-16, accumulating losses of over Rs 2000 crore until December 31, 2015; it is likely to end that fiscal with a net loss too. The company is valued at Rs 13,440 crore, less than a third of its total debts. However, RCom plans to reduce its debts to Rs 10,000 by selling Rs 30,000 crore of telecom assets.
Another firm of the group Reliance Infra is already sitting the pile of Rs. 25,000 crores debt as of February this year. In November 2015, it agreed to sell a 49 percent stake in its electricity generation, transmission, and distribution business in Mumbai and adjoining areas to Canadian pension fund Public Sector Pension Investment Board (PSP Investments). The transaction is expected to reduce the debt of Rs.7,000 crore attached to the distribution business. It agreed to sell its cement business to Birla Corporation for Rs 4,800 crore in February and is looking to sell its entire roads portfolio, valued at Rs 9,000 crore, for which three international bidders have been short-listed. R-Infra’s EBIT stands at Rs 1,686 crore, against interest liability of Rs 1,974 crore. Its market capitalization at Rs 14,476 crore is Rs 10,000 crore lower than its debt. By sale, of cement, road and the Mumbai power distribution businesses, the company expects to be debt free on a standalone basis by the end of this fiscal.
Besides the above, Reliance Capital which has a debt of Rs. 24,000 crore has sold the stakes in phased manner. Mr. Ambani is also looking to exit the media and entertainment businesses, under Reliance Broadcast Network Ltd (RBNL), for Rs 1,500 –Rs 2,000 crore. — NEXT PAGE —-
