Whopping drop in share price; Anil Ambani Group blames L&T Finance, Edelweiss Group

Whopping drop in share price; Anil Ambani Group blames L&T Finance, Edelweiss Group

Agency News

Anil Ambani promoted Reliance Group on Friday pointed accusing fingers towards the NBFCs such as L&T Finance and Edelweiss Group as the reason behind the sharp loss in the shares of Reliance Group.

On Thursday, L&T Finance, an arm of L&T Finance Holdings, has offloaded Anil Dhirubhai Ambani Group stocks. The identity of the buyers could not be ascertained immediately nor whether the shares sold were pledged by company with L&T Finance. According to a bulk deal data with the NSE, the NBFC company sold two crore shares of Reliance Communications at an average price of ₹5.14. Similarly, it sold around 77.87 lakh shares of Reliance Capital at ₹123.89, 49 lakh shares of Reliance Infrastructure at ₹120.98 and 6.25 crore shares of Reliance Power at ₹10.85.

Reliance Capital, in a statement, alleged that the action of a few NBFCs, substantially L&T Finance and certain entities of Edelweiss Group, of invoking pledge of listed shares of Reliance Group and making open market sales of about Rs 400 crore from February 4 to February 7, has led to a near 55 per cent drop in the Group's market capitalisation.

Reliance Capital also charged that: "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 per cent, in market capitalisation 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."

"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, including amongst others, price manipulation, insider trading, front running and market abuse, and is in violation of various regulatory provisions, including inter alia the SEBI (Prohibition of Fraudulent and Unfair Trade Practices), Regulations, which are applicable to all persons (including NBFCs) dealing in listed securities, whether on invocation of pledge or otherwise," the statement said.