Reliance Home Finance Limited has informed the Exchange about Public announcement made pursuant to order passed by the Tribunal under Section 13 of Insolvency and Bankruptcy Code against Reliance Home Finance Limited (In CIRP)
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Reliance Home Finance Limited has been admitted into the Corporate Insolvency Resolution Process (CIRP) under Section 13 of the Insolvency and Bankruptcy Code following an order by the Tribunal (NCLT). This means formal insolvency proceedings have been initiated against the company by its creditors. A public announcement has been made to the stock exchange in compliance with the Tribunal's order. The company will now be managed by an interim resolution professional, and a moratorium on debt recovery actions will be in place. This is a significant negative development for the company and its shareholders.
Highly negative for shareholders — existing equity could be substantially diluted or wiped out depending on the resolution plan. The stock is likely to face heavy selling pressure and possible suspension due to ongoing insolvency proceedings.