Reliance Infrastructure and Reliance Power shares tanked on Friday after Yes Bank invoked around 9 crore Reliance Power shares owned by promoter Reliance Infrastructure.
Following the invocation of shares on Thursday, Reliance Infrastructure’s holding in Reliance Power has come down to 29% from earlier 32.21%.
Reliance Infrastructure shares tanked 6.57% to close at 55.50 a piece, while Reliance Power shares fell 4.81% to close the day at Rs 4.16 each on the Bombay Stock Exchange.
The invocation of shares by Yes Bank comes after the February 18 announcement by Anil Ambani-led Reliance Group that around 90% of their lenders have agreed to refrain from invocation and sale of group’s pledged shares till September 30, 2019.
The Reliance Group had said it will pay the principal and interest to the lenders as per the scheduled due dates specified in the loan agreements.
When contacted, Yes Bank and Reliance Power spokespersons declined to comment on reasons for the invocation of shares.
As part of agreement, Reliance Group had also informed the lenders that it has appointed investment bankers to place a part of its direct 30% shareholding in Reliance Power to pay off its debt. As per the company, the roadshows were to begin in a weeks’ time.
Between February 4-7 some of the NBFC lenders to the company, Edelweiss Group, IDBI Trusteeship Services, STCI Finance, and L&T Finance had invoked the pledge on shares in Reliance Group companies – Reliance Communications, Reliance Capital, Reliance Power, and Reliance Infrastructure, subsequently selling the invoked shares in the open market for Rs 400 crore.
The Anil Ambani Group has nine lenders at promoter level. Some of the key lenders are – Templeton MF, DHFL Primeamerica MF, Indiabulls MF, IndusInd Bank and Yes Bank. Franklin Templeton has around 90% of the mutual fund (MF) exposure.