Reliance Companies face a 50% fall in its Promoter Stake

After the Reliance Communications failed to get approvals from lenders and the Department of Telecommunications and filed for bankruptcy, approximately Rs. 552.17 Crore of its stocks were sold dropping the promoter stake below 50%.

Reliance Communications led by Anil Ambani and companies including Reliance Capital, Reliance Communications, Reliance Infrastructure and Reliance Power have been severely affected after it could not conclude its deal with Reliance Jio.

Non-banking Finance Companies like L&T Finance and certain entities of Edelweiss Group sold 31.81 Crore pledged shares of Reliance Communications worth Rs. 552.17 Crore with a loss to the investor wealth of Rs. 13,000 Crore.

The total stake of promoters on Reliance Group was reduced by 1-4% in the companies. Reliance Capital, on the other hand, witnessed a decline of 4.09% in the promoter stake, after 1.03 Crore shares of worth Rs. 126.94 Crore were sold by the finance companies. The new promoter share of the company (Reliance Capital) has come down to 47.90% from 51.99%.

Reliance Communications, one of the biggest telecommunications operators in India, currently filed for bankruptcy on 1st February after which the finance companies sold 8.98 Crore shares of the Communications Company for Rs. 52.75 Crore. This resulted in the promoter share of Reliance Communications to 49.71% from 52.96%.

For Reliance Infrastructure, the finance companies sold 75 Lakh pledged shares for Rs. 108.71 Crore after which the promoter stake is now at 45.49% from 48.36%. The least percentage of declines in the promoter stake is in the Reliance Power Company.

The promoter stake of Reliance Power is now at 39.64% from 40.53% showing a fall of 0.89%. Reliance Group of Companies have responded to all these selling of shares and said

Reliance Promoter Stake

NBFC’s like L&T Finance and certain entities of Edelweiss Group has made open market sales of approximately Rs. 400 Crore between 4 to 7 February which resulted in a fall of Rs. 13,000 Crore, i.e. nearly 55% in the market capitalisation of Reliance Group. This has caused losses to 72 Lakhs institutional and retail shareholders.”

Edelweiss Group came to its defence on Saturday claiming all the allegations to be baseless and false. L&T Finance, on the other hand, said that the sale of all the shares is according to the legal contract.   

The Board of Directors of the Reliance Capital Group have decided to take legal action to protect the interests of all their shareholders.  

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