Reliance ADAG accuses L&T Finance, Edelweiss of illegal selling of Anil Ambani firm stocks

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Updated: February 8, 2019 5:03:52 PM

After the recent rout in shares of its group stock, Anil Ambani-led Group has accused L&T Finance and Edelweiss Group of illegally invoking pledge of listed shares leading to a 55% drop in mcap in just 4 days.

RCom, Reliance Communications, RCom shares, Anil Ambani, Anil Ambani group, market newsAnil Ambani-led Group has accused L&T Finance and Edelweiss Group of illegally invoking pledge of listed shares leading to a 55% drop in mcap in just 4 days. (Image: Reuters)

After the recent rout in shares of its group stock, Anil Ambani-led Group has accused L&T Finance and Edelweiss Group of illegally invoking pledge of listed shares leading to a 55% drop in mcap in just 4 days. In its statement, the group said that L&T Finance and certain entities of Edelweiss Group, have invoked pledge of listed shares of Reliance Group and made open market sales of the value of about Rs 400 crore from February 4th to February 7th.

“The illegal, motivated and wholly unjustified action by the above 2 groups has precipitated a fall of Rs. 13,000 crore, an unprecedented nearly 55%, in market capitalisation of Reliance Group over just these 4 short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all stakeholders,” the group said in the release. 

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The group said that the manner of conduct of the open market sales by L&T Finance and Edelweiss, is illegal on several counts, including price manipulation, insider trading, front running and market abuse, among others and is in violation of various regulatory provisions.

The group reiterated that Reliance Capital, Reliance Infrastructure and Reliance Power (and their various subsidiaries) are performing satisfactorily on all operating parameters, and there is no change whatsoever on any aspect as compared to the position prevailing prior to these sales. 

The group also clarified on RCom’s current position saying that the telco has announced plans for debt resolution through NCLT (and not liquidation as mistakenly reported by select media), for the reasons stated in its enclosed media releases dated 1.2.2019 and 3.2.2019. “There is no adverse impact of this unrelated RCOM proposal on Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd,” the group added in its statement. The group’s stocks are trading with gains, RCom stocks are up 5% to Rs 5.50, RPower shares are trading 10% higher at Rs 10.90, Reliance Infra shares are up 5% to Rs 116.30.

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