MUMBAI: A day after the Reliance Anil Dhirubhai Ambani Group (ADAG) called it “illegal” and “motivated” the action by lenders to sell the pledged shares, leading to erosion of its market capitalisation and loss to investors at large, the boards of three ADAG companies met on Saturday and decided to take legal recourse.
In separate regulatory filings with the stock exchanges, Reliace Capital, Reliance Infrastructure and Reliance Power said that their respective boards met on Saturday to review events of the last week, and “recommended and approved that the company take all appropriate legal steps to protect and enhance the value of all its stakeholders”.
Larsen & Toubro Finance and Edelweiss Group, who were accused of having taken unwarranted action of selling shares in the open market, however, refuted the charge, maintaining that they had followed contract terms.
Reliance Capital said its over 7 lakh shareholders, Reliance Power’s 31.75 lakh investors, and Reliance Infrasture’s 8 lakh shareholders were affected by the action of the two lenders. Reliance Power separately said its board also reviewed the events leading to a sharp fall in market capitalisation (around `13,000 crore) and destruction of wealth due to “illegal, motivated and unwarranted actions of L&T Finance Limited and Edelweiss Group impacting its over 3.1.75 lakh shareholders”.