Reliance Communications has received a letter dated November 9, 2022 from Axis Trustee Services for invocation and sale of 100 per cent equity shares of Globalcom IDC Limited (GIDC), for non-repayment of debt. GIDC is a step down wholly-owned subsidiary of the company.
Reliance Communications held 100 per cent stake in GIDC through another subsidiary, Reliance Webstore Limited (RWSL). In August 2016, Reliance Communications and Reliance Infratel Limited had taken loans Rs 5.65 billion and Rs 6.35 billion respectively from the State Bank of India. Further, in September 2021, the telco pledged 100 per cent of its shareholding in GIDC to the bank against the loan. As on November 4, 2022, amounts of Rs 14.01 billion and Rs 14.04 billion were due and payable by Reliance Communications and Reliance Infratel Limited, respectively, against the loan.
After the above invocation of pledged shares and consequent sale of pledged shares by Axis Trustee to a third party, GIDC will cease to be a step down wholly owned subsidiary of Reliance Communications.