Reliance Capital shares hit lowest level in over 15 years, Know the Reason... English News, Hindi News, Latest News, Breaking News

Reliance Capital shares hit lowest level in over 15 years, Know the Reason...

[Edited By: Gaurav]

Friday, 14th June , 2019 06:54 pm

Shares of Reliance Capital lost more than 6% during intraday trades on Thursday, dropping to their lowest level in more than 15 years after the resignation of Price Waterhouse & Co.

The title suffered a shock, all companies of the group Anil Dhirubhai Ambani (ADAG) also losing ground Thursday. Reliance Capital shares reached a low of ¥ 82 on Thursday, the lowest since November 25, 2003 (£ 83.24). Incidentally, equities lost nearly 64% in the current calendar year, while the Sensex benchmark gained just over 10%.

"The group has gone through difficult times because of the high debt or debt that appears in the balance sheets of its companies," said Arun Kejriwal of Kejriwal Research and Investment Services.

"Although they have liquidated some debts, there are still concerns about the future pruning of debt on the balance sheet. It is also feared that after the settlement of this debt by the liquidation of assets, the generated income is sufficient for the companies in the group can continue to operate, "he added.

In a letter to Reliance Capital on June 11, PWC stated that "as part of the ongoing audit for 2018-2019, we noted certain observations / transactions that, in our assessment, could, if not were not satisfactorily resolved, significant, material and substantial in the financial statements. "

"We have not received substantial / satisfactory answers to our questions in the light of our observations," says the letter.

Aside from Reliance Capital, ADAG entities such as Reliance Home Finance and Reliance Communications reached their lowest level of 52 weeks on Thursday.

At the same time, the ongoing liquidity crisis has made investors bearish to major banks. Shares of Yes Bank lost close to 13%, or £ 25.49, to close at £ 117.20 after UBS reduced its target price by 47% from £ 170 to £ 90 previously. The Indusind Bank also lost nearly 5%, or £ 77.70, to close at £ 1,490.05.

Trending News

32,249,900

363,849

31,441,260

432,112

Reliance Capital shares hit lowest level in over 15 years, Know the Reason...

Related News -

Latest News

World News