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Reliance Defence and Engineering (RDEL) of the Anil Ambani Group has received the go-ahead from the RBI and lenders for a ₹6,800-crore corporate debt restructuring (CDR) plan and refinancing scheme. The debt would be refinanced with lower interest rate and maturity period of about 20 years, sources said.
Reacting to the approval, the shares of Reliance Defence climbed 3.36 per cent to end at ₹66.05.
In March 2015, when Pipavav Defence and Offshore Engineering was acquired by the Anil Ambani Group and renamed as RDEL, the debt was already in its books. RDEL is a subsidiary of Reliance Infrastructure, which has major interests in the power and infrastructure space. RDEL’s current order book stands at over ₹5,300 crore.
Sources said a consortium of lenders led by IDBI has given its approval to the CDR plan. The IDBI, which is the lead banker, has informed the Ministry of Defence about the debt restructuring plan of RDEL. The CDR plan makes RDEL eligible to participate in all future contracts of the Navy.
Refinancing schemeThe lenders have also given their go-ahead for the implementation of the refinancing scheme of RDEL. Both the proposals were presented to the CDR Empowered Group’s meeting on March 29 and were approved by the requisite majority of lenders, sources said
The exit will help RDEL to compete with Union Government-owned shipyards for multi-billion dollars contracts for making submarines, landing platform docks (LPDs) and corvettes.
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