Friday 1 July 2016

Reliance Defence gets Reserve Bank nod to exit CDR

Reliance Defence and Engineering has received RBI approval to exit the corporate debt restructuring package. Anil Ambani-led Reliance Infrastructure has acquired nearly 35 per cent in Pipavav Defence and Offshore Engineering Co, which has been renamed as Reliance Defence and Engineering. Sources said the Reserve Bank of India (RBI) has cleared Reliance Defence exiting the CDR package. The
company's debt to the tune of Rs 6,000 crore will be refinanced with maturity of 20 years while interest cost on the debt would be reduced to 11 per cent, sources added.
When contacted, Reliance Group spokesperson declined to comment.
In December 2015, Reliance Infrastructure completed the open offer made to Pipavav Defence, taking its overall holding in the company to nearly 35 per cent. The open offer was made through Reliance Defence Systems Pvt.
The exit from CDR is expected to lead to greater financial flexibility and business opportunities for Pipavav Defence, enabling the company to contribute to the security of the country and pursue the Make in India and Skill India programmes in an even more significant manner, Reliance Infrastructure had said in November.
Reliance Defence rose nearly six per cent to Rs 67.05 in afternoon trade on BSE.

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