Prior Intimation of the 01st (First) Meeting of the Committee of the Creditors (CoC) of Reliance Home Finance Limited (The Company).
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Awaiting price reaction for this filing.
Reliance Home Finance has informed the stock exchanges that the first meeting of the Committee of Creditors (CoC) will be held under the Insolvency and Bankruptcy Code (IBC). The constitution of a CoC is a standard procedural step that follows NCLT admitting the company into the corporate insolvency resolution process (CIRP). At this meeting, creditors will appoint an insolvency resolution professional, oversee the resolution process, and decide the future course of action including evaluation of any resolution plans. Reliance Home Finance, an NBFC promoted by Reliance Capital, has been undergoing significant financial stress for several years. The stock may continue to be illiquid and volatile as the insolvency process unfolds, with shareholders likely facing dilution or write-down of their holdings depending on the resolution outcome.
Confirmation that NCLT-initiated insolvency proceedings are formally underway. Equity shareholders typically rank last in the waterfall and face significant risk of value erosion if a resolution plan involves haircuts to creditors.