Anil Ambani-led Reliance Group says L&T Finance, Edelweiss behind its market fall
Anil Ambani-led Reliance Group said on Friday that illegal and motivated action by L&T Finance and certain entities of Edelweiss Group precipitated a fall of Rs 13,000 crore this week, eroding its market capitalization by 55 per cent over just four days.
A few non-banking financial companies, substantially L&T Finance and certain entities of Edelweiss Group, invoked pledge of listed shares of Reliance Group and made open market sales of the value of about Rs 400 crore from February 4 to 7, the group informed stock exchanges.
“The illegal, motivated and wholly unjustified action by these two groups has precipitated a fall of Rs 13,000 crore, an unprecedented nearly 55 percent, in market capitalization of Reliance Group over just these four short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all stakeholders,” said Reliance Group in a statement.
The statement said the purported exercise of rights to enforce the security is illegal and excessive and against the process and requirements of the respective borrowings’ documentation.
The manner of conduct of the above open market sales, without any attempts whatsoever at orderly market disposal through a bid or structured process for shares comprising the holding of the promoter group, is also illegal on several counts. said Reliance Group.
The statement said 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.
Reliance Communications has announced plans for debt resolution through the National Company Law Tribunal (and not liquidation). There is no adverse impact of this unrelated RCom proposal on Reliance Capital, Reliance Infrastructure and Reliance Power, said the statement.(ANI)