Company News

BUZZ-India's Reliance Group cos surge after lenders agree to not sell pledged shares

** Shares of Anil Ambani-led Reliance Infrastructure Ltd , Reliance Power Ltd and Reliance Capital Ltd rise between 11.3 - 19.9 pct

** On Saturday, lenders of the 3 cos announced they would not sell their pledged shares in the cos ( ( (

** This comes as a relief for cos after shares plunged earlier this month following reports of L&T Finance Holdings Ltd and certain entities of Edelweiss Group selling stock of the Reliance Group cos they held as collateral

** The sale was termed as “illegal and excessive” by Reliance Group but L&T and Edelweiss rejected the accusations

** Reliance Infrastructure Ltd, which rose as much as 19.88 pct, recorded its biggest intra-day pct gain since May, 2009 while Reliance Power saw its strongest intra-day performance since Jan last year

** However, the stocks have taken a beating this year as of Friday’s close with Reliance Infra and Reliance Power falling over 60 pct while Reliance Capital shed 35.3 pct