A day after accusing L&T and Edelweiss entities of causing huge erosion in market value by “illegal and motivated” sale of shares pledged with them, Anil Ambani-led Reliance Group said the boards of its three listed firms have recommended taking “all appropriate legal steps” to protect shareholder value.
In separate regulatory filings, Reliance Capital, Reliance Infrastructure and Reliance Power said their respective boards met on Saturday to review the events of last week, leading to a sharp fall in market capitalisation.
Firms refute allegations
L&T Finance and Edelweiss Group had refuted the allegations and charged Reliance Group with failing to make timely payments, which, they said, necessitated the sale of pledged shares.
In a filing, Reliance Capital said its over 7 lakh shareholders have been impacted by what it termed as “illegal, motivated and unwarranted actions of L&T Finance.”
Reliance Power separately said its board also reviewed the events leading to a sharp fall in market capitalisation and destruction of wealth due to “illegal, motivated and unwarranted actions of L&T Finance Limited and Edelweiss Group impacting its over 31.75 lakh shareholders.”
Reliance Infrastructure blamed L&T Finance for market value erosion, saying it had impacted its over 8 lakh shareholders.
The boards recommended legal action to protect shareholder value.
On Friday, the Reliance Group alleged that some NBFCs, “substantially 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 approximately ₹400 crore from February 4-7, precipitating a fall of ₹13,000 crore in market capitalisation of Reliance Group over just these four short days.”