Reliance Capital fell over 12.3 percent on Monday to over 2-decade low after group Chairman Anil Ambani said that the company will exit the lending business.

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"As part of the transformation process, Reliance Capital will no longer be in the lending businesses and they are working closely with lenders to finalise to resolution plan. The plan expected to be completed in the next few months by December 2019," said Anil Ambani at the company’s annual general meeting.

Shares of Reliance Capital have fallen around 90 percent since the beginning of this year. On Monday, the stock slumped as much as 13.6 percent in intra-day deals to their lowest since March 30, 1999, at Rs 24.20. The stock ended 12.3 percent lower at Rs 24.5 per share. In comparison, the BSE Sensex fell 0.4 percent or 155 points to 38,667.

In June, auditors raised several red flags around the company’s fourth-quarter results, including a lack of clarity in related party transactions and accounting methodology.

This comes as the non-banking financial company faced 'collateral damage' due to a slowing economy and a lending crisis in the sector, Ambani said.

The company has been divesting assets this year. It reduced its stake in asset management arm Reliance Nippon Life Asset Management to just over 4 percent from about a quarter.

“It is unfortunate that during all this noise, the true value of our businesses has not been recognised,” Ambani said.

At the AGM, Ambani said that the group has repaid over Rs 35,000 crore in the 14 months till May 2019 and will be paying another Rs 15,000 crore till March 2020. He added that the group has over Rs 60,000 crore receivables stuck in Regulatory & Arbitration matters.

He also said, "We are in the process of transforming Reliance Capital. Sale of stake in life insurance biz brought Rs 6000 crore, which was used for debt reduction."

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First Published:Sept 30, 2019 2:03 PM IST