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Anil Ambani's Reliance says pledged-share sales drove group firms' stock plunge

Reuters 

(Reuters) - A disposal of pledged securities by financial firms caused steep declines over the last few days in the shares of some belonging to Indian Group - controlled by tycoon - the said on Friday.

A few (NBFCs) invoked pledged shares of Capital Ltd, and Reliance Power Ltd, and made open market sales of about 4 billion rupees ($56.23 million) during Feb. 4-7, triggering the sharp falls in their shares, the companies said in stock exchange filings https://

In that period, shares of Reliance Power plunged 62.1 percent, while those of Reliance Infrastructure dropped 58.6 percent, and Reliance Capital fell 38.6 percent.

The companies said the disposals were made by and certain entities of It was not clear who had pledged the shares.

called the move by the NBFCs "illegal and excessive", and said the sale was done without attempts at "orderly market disposal". Reliance Capital, Reliance Infrastructure and Reliance Power were "performing satisfactorily on all operating parameters", the group added.

and L&T Finance did not immediately respond to Reuters' requests seeking comment.

also said that plans by (RCom) to resolve its debt through the had no adverse impact on the three companies in question.

RCom's stock has dropped 55.2 percent since it announced its plan on Friday.

($1 = 71.1410 Indian rupees)

(Reporting by Chris Thomas in Bengaluru; Editing by Rashmi Aich and Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 16:07 IST
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