Mukesh Ambani’s Masterstroke: Reliance Raises ₹21,170 Crore, Banks Take Notice
According to a Bloomberg article citing individuals familiar with the situation, Mukesh Ambani-led Reliance Group firms raised over 210 billion rupees ($2.4 billion) through asset-backed securities in a significant move. It is significant to remember that this is one of the biggest acquisitions of this kind that India has seen this year. According to the report, the top asset managers in the nation, such as Aditya Birla Sun Life Asset Management Co., HDFC Asset Management Co., ICICI Prudential Asset Management Co., Nippon Life India Asset Management Ltd., and SBI Funds Management Limited, purchased roughly three-fourths of the issue.
Three trusts—Radhakrishna Securitization Trust, Shivshakti Securitization Trust, and Siddhivinayak Securitization Trust—issued the securities, which are referred to locally as pass-through certificates. They had maturities of roughly three, four, and five years, respectively, and an average coupon of 7.75 percent.
Here are the key highlights:
Reliance Group companies successfully raised around ₹210 billion ($2.4 billion) through asset-backed securities.
Approximately three-fourths of the issuance was subscribed by India’s leading asset managers, including Aditya Birla Sun Life Asset Management and HDFC Asset Management.
The securities, locally called pass-through certificates, were issued via three trusts: Radhakrishna Securitisation Trust, Shivshakti Securitisation Trust, and Siddhivinayak Securitisation Trust.
This move provided investors with an opportunity to own top-rated asset-backed securities in a market still largely dominated by non-banking financial companies (NBFCs).
According to ICRA, the transaction strengthens India’s securitization market, which, although relatively small, is on track to surpass ₹2.5 trillion in issuance by the end of the current fiscal year.
A Balasubramanian, CEO of Aditya Birla Sun Life AMC, told Bloomberg, “We are among the top investors because we found the instrument and the structure fitting into our investment requirements.”
