L&T Finance, Edelweiss Group defend actions against Anil Ambani-led Reliance ADAG

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L & T Finance and Edelweiss Group have defended their actions with respect to the sale of shares of Anil Ambani Reliance Group. His statement to the stock markets came after Reliance Group blamed these entities for a drop in their market capitalization.

Earlier, on February 8, the Reliance Group had said that some non-bank financial companies, substantially L & T Finance and certain entities of the Edelweiss Group, had invoked the commitment of the listed shares of the Reliance Group and had made sales in the open market for a approximate value of 400 rupees. Crore from February 2 to 7.

“The illegal, motivated and totally unjustified action by the two previous groups has precipitated a fall of Rs 13,000 million, an almost unprecedented 55 percent in the market capitalization of Reliance Group in these four short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all interested parties, “said the Reliance Group statement.

In response, L & T Finance said that they had granted loans against the commitment of shares to the companies of the RelAG ADAG Group. They said that, according to the loan and pledge agreements, the borrower did not solve several events of default, including the margin for the deficit in the stipulated security coverage.