Axis Bank takes over RCom’s enterprise arm, Globalcom

​​Axis Bank has taken over Reliance Communication’s (RCom) enterprise business, Globalcom IDC Ltd, due to the non-payment of dues. In its disclosure to the exchanges, RCom notified that it had received notice on November 9 from Axis Trustee Services Limited, seeking to invoke and sell 100 per cent equity shares of Globalcom, a step-down wholly owned subsidiary of RCom, which was pledged by Reliance Webstore Limited, a wholly owned subsidiary of RCom, in favour of State Bank of India.

RCom received another email from Axis Bank on December 14 stating that it has invoked the pledge over 20,99,994  (100 per cent) equity shares of Globalcom. 

In 2016, RCom and Reliance Infratel Limited had availed a loan facility of ₹565 crore and ₹635 crore, respectively from State Bank of India. 100 per cent of the equity of Globalcom was pledged to the lender as part of this loan facility. 

According to RCom’s disclosure, RCom and Reliance Infratel owe ₹1,401.03 crore and ₹1,404.03 crore, respectively, to Axis Bank against this loan. Recently Reliance Jio acquired Reliance Infratel, for ₹3,500 crore. This money is being kept in an escrow account handled by the State Bank of India, which will handle the disbursement of this money to the creditors such as Axis. Meanwhile, Axis Bank has taken over Globalcom to recover RCOM’s direct dues to the bank. 

RCom was an Indian mobile network provider headquartered in Navi Mumbai that offered voice and 2G and 3G and 4G data services. In February 2019, the company filed for bankruptcy as it was unable to sell assets to repay its debt.

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