Reliance Infrastructure on Thursday said it had sold its erstwhile headquarters ‘Reliance Centre’ in Santacruz, Mumbai to Yes Bank for Rs 1,200 crore.
The proceeds from the sale will be utilised to repay the debt of the private lender, Reliance Infrastructure said in a stock exchange filing. After this sale, Yes Bank’s exposure to Reliance Infrastructure has come down to Rs 2,000 crore, as per sources.
FE has learned Reliance Centre may soon be the new address of Yes Bank as the lender is likely to convert the building as its corporate headquarters. The bank currently operates from Indiabulls Finance Centre in Lower Parel, Mumbai.
Last July, Yes Bank had taken over the possession of Reliance Centre after the company failed to clear dues.
The action was taken by the lender under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFESI) Act after the company failed to pay Rs 2,892 crore.
Apart from Reliance Centre, Yes Bank had also taken possession of two floors in Nagin Mahal in south Mumbai.
With the sale of Reliance Centre to Yes Bank, Reliance Infrastructure has sold three major assets since January. During the December quarter earnings (Q3FY21), the company had disclosed that it had sold the Delhi-Agra toll road to Cube Highways and Infrastructure for an enterprise value of Rs 3,600 crore. Apart from it, Reliance Infrastructure has sold its entire 74% stake in Parbati Koldam Transmission Company to India Grid Trust for an enterprise value of Rs 900 crore. The company also mentioned it has Rs 60,000 crore of receivables pending for 5-10 years before various forums, including regulatory and arbitration approval.
In March 2021, CARE Ratings had assigned ‘CARE D’ to Reliance Infrastructure in the ‘issuer not cooperating’ category. The reaffirmation of ratings to bank facilities and instruments of Reliance Infrastructure continues to be constrained by ongoing delays in servicing of debt obligations of the company, CARE Ratings said.
The consolidated net profit of the company had declined 77% year-on-year (y-o-y) to Rs 80 crore during the December quarter (Q3FY21). Similarly, Reliance Infrastructure’s total income declined 11% y-o-y to Rs 4,010 crore during Q3FY21.