Edelweiss falls 7% despite clarification on investment in Kohinoor group

Shares of Edelweiss Financial Services ended over 7 per cent lower at Rs 99 apiece on the BSE on Frioday despite the company issuing clarification on group exposure to Kohinoor.

The stock of the financial services firm hit a low of Rs 93, its lowest level since December 27, 2016. It slumped 13 per cent in early morning trade after Business Standard reported that the Enforcement Directorate (ED) was examining an investment of Rs 450 crore made by Edelweiss Asset Reconstruction Company (ARC), a subsidiary of the company, in Kohinoor CTNL Infrastructure.

In the past six trading days, the share price of Edelweiss Financial Services has plunged 35 per cent, as compared to a 2 per cent decline in the S&P BSE Sensex.

“The current probes by IL&FS on Kohinoor transactions are for the period of 2005-12 and related to transactions entered into by IL&FS and certain parties. Edelweiss group had no exposure to Kohinoor during that period,” Edelweiss Financial Services said in a regulatory filing.

ED has asked for some information and understanding of the process and the same has been briefed to them by us, it added. CLICK HERE TO READ FULL REPORT