Axis Trustee has invoked a pledge over 100 per cent equity in RCom subsidiary Globalcom IDC Limited (GIDC) for non-repayment of loans.
“Reliance Communications Limited (RCOM) had previously vide its communication dated November 10, 2022, intimated the stock exchanges of receipt of a notice dated November 09, 2022 from Axis Trustee Services Limited (Axis Trustee), seeking to invoke and sell 100% of equity shares of Globalcom IDC limited (GIDC), a step down wholly owned subsidiary of RCOM, which were pledged by Reliance Webstore Limited (RWSL), a wholly owned subsidiary of RCOM, in favour of State Bank of India. This is to inform you that in furtherance of the earlier communication dated November 09, 2022 sent by Axis Trustee as referred to above, RCOM has now received another email from Axis Trustee on December 14, 2022, stating that it has invoked the pledge over 20,99,994 equity shares of GIDC (i.e. 100% of the equity shares of GIDC),” Reliance Communications Limited said in a notice to stock exchanges.
RWSL is a wholly owned subsidiary of RCOM, holding 100% of equity shares in GIDC. Vide facilities agreement dated August 29, 2016, RCOM and Reliance Infratel Limited (RITL) had availed a loan facility of Rs. 565 Crore and Rs. 635 Crore respectively from State Bank of India (Lender). Vide share pledge agreement dated September 23, 2016, RWSL has pledged 100% of its shareholding in GIDC comprising 20,99,994 equity shares to the Lender for above loan facility. As per the notice dated November 09, 2022 received from Axis Trustee, as on November 04, 2022 amount of Rs. 1401.03 Crore and Rs. 1404.03 Crore are due and payable to the Lender by RCOM and RITL respectively against the above loan facility. During the financial year 2021-22, the turnover of GIDC was Rs. 132.21 Crore which is 30.19% of the consolidated turnover of RCOM during the financial year 2021-22.