All Anil Ambani-owned Reliance companies are surging today on the back that Reliance Group has reached a 'standstill agreement' with more than 90 percent of its lenders. Under this, lenders will not sell any of the shares pledged by promoters till September.

Share Market Live

NSE

Reliance Communications soared by 24.5 percent intraday on NSE at Rs 6.15 per share. Reliance Capital was higher by 12.3 percent at Rs 159.10 per share. Reliance Power rose 19.6 percent to Rs 12.20, and Reliance Infrastructure jumped by 19.8 percent higher to Rs 137.80.

The stocks opened with huge gains after signing the agreement which says that the group will pay the principal and interest amounts to the lenders as per the scheduled due dates, while it has also appointed investment bankers for part placement of the group's direct 30 per cent stake in Reliance Power to institutional investors.

Under this in-principle standstill understanding, these lenders will not enforce security and will not sell any of the promoters' pledged shares till September 30, 2019 on account of lower collateral cover or reduced margin due to the recent unprecedented fall in share prices.

Reliance Infrastructure Ltd holds 40 percent equity in Reliance Power, and even after placement of its holding by the promoters, majority stake and control remains with the Reliance Group, the bankers said.

The latest standstill agreement follows a public spat between the group and two other lenders, Edelweiss and L&T Finance groups, who had sold shares of some listed Reliance Group entities alleging default in payments, but were accused of indulging in "illegal and unwarranted" activities to hammer down the share prices.

First Published:Feb 18, 2019 9:57 AM IST