RCom unit sold to third party for non-repayment of loans

Anil Ambani’s Reliance Communications Friday said it has received a letter dated November 9 from Axis Trustee Services for invocation and sale of 100% of equity shares of Globalcom IDC Limited (GIDC), a step down wholly-owned subsidiary of the company, for non-repayment of debt.

RCom held 100% stake in GIDC through another subsidiary Reliance Webstore Limited (RWSL). In August 2016, RCom and Reliance Infratel Limited had taken loans Rs 565 crore and Rs 635 crore respectively from the State Bank of India. In September that year, the telco pledged 100% of its shareholding in GIDC to the bank against the loan.

As on November 4, amounts of Rs 1401.03 crore and Rs 1404.03 crore were due and payable by RCom and RITL respectively against the loan.

“After the above invocation of pledged shares and consequent sale of pledged shares by Axis Trustee to a third party, GIDC will cease to be a step down wholly owned subsidiary of RCom,” the company said.

GIDC reported a turnover of Rs 176.32 crore during the financial year 2021-22, which is 30.19% of the consolidated turnover of RCom during the financial year 2021-22, it added in the BSE filing.