Stocks of Reliance Group companies Monday zoomed up to 11.3 per cent after the Anil Ambani-led Group reached a ‘standstill agreement’ with more than 90 per cent of its lenders under which they will not sell any of the shares pledged by promoters till September.
Shares of Reliance Power zoomed 11.27 per cent and Reliance Communications advanced by 10.91 per cent.
Reliance Infrastructure jumped 7.40 per cent while Reliance Home Finance gained 6.71 per cent. Reliance Naval and Engineering soared 5.15 per cent on BSE.
Reliance Capital gained 2.86 per cent and Reliance Nippon Life Asset Management 2.64 per cent.
Under the pact, the Group will pay the principal and interest amounts to the lenders as per the scheduled due dates.
It has also appointed investment bankers for part placement of the group’s direct 30 per cent stake in Reliance Power to institutional investors.
When contacted, a Reliance Group spokesperson said: “We are grateful to our lenders for believing in the intrinsic and fundamental value of our companies, and granting their in principle approval to standstill arrangements.”
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.