Most credit rating agencies have already downgraded it. There are fears of the account itself developing into a major NPA, but the Anil Ambani led Reliance is confident that a Summer Sale of its assets might bring some relief.
According to analysts, an asset-sale could potentially raise $4.5 billion to bring down group-debt that runs at approximately $13.5 billion.
The asset-sale includes IPOs, road assets, mergers and also real estate. Nearly 133 acres of real estate situated in New Delhi and Mumbai are available on offer. The parcel includes office space replete with medical facilities as well as a lake and helipad.
There are also talks of road assets and a private sale involving the undersea cable unit of Global Cloud Xchange valued at $500 million. An IPO of an infrastructure trust that groups the firm's road assets is also on the anvil. The IPO is expected to raise Rs. 2500 crore.
10% of Reliance General Insurance valued in the range of Rs 500-1000 Cr, and 10% of Reliance Nippon Life Asset management in the range of Rs. 1100-2000 cr will also be driven through an IPO.
Analysts have also pointed out private transactions such as transmission tower sale to Brookfield Infrastructure Group for Rs. 1100 Crore, and a potential merger of RCom with Aircel for Rs. 14,000 crore as ones that would help reduce debt.
The Reliance faction is pitched between a tough RBI and mounting losses coming by virtue of Jio's free services that have depleted its market-share in the telecom sector.
RBI in recent times has suggested lenders to bring defaulters to bankruptcy-courts in cases of delinquent payments. With nearly $180 billion in bad loans, the RBI's tough stance has only increased fears for Reliance, although the group companies are yet to miss a crucial 90-day payment schedule to be categorized as an NPA.
Ambani had shared reporters on June 2 that the group's debt-reduction program would be the largest in India. The credit improvement plan seems justified, but there may be more to be sold to keep the Reliance-ship alive.