Economic News

Soon after Supreme Court holds Anil Ambani and Two Directors Guilty in Ericsson Case, Reliance Group Shares Fall by 1 to 9 Percent

On Wednesday, the Supreme Court found Reliance Group chairman Anil Ambani and other two of its director guilty of Contempt of Court in the Ericsson case after which the shares of Reliance group fell in the market. On the BSE, the key losers were the Reliance Group.

The telecom operator, Reliance Communications shares, were down by 6.15 percent at Rs 5.63, while the Reliance Capital shares were down by 10.26 percent at 135.95. Reliance Infrastructure Share too fell to 5.03 percent at 116.05. The stocks of Reliance Power were down by 0.46 percent to 10.80 on the BSE listing, Share of Reliance naval and Engineering fell to 5.01 percent at 8.54, shares of Reliance Home Finance too fell to 3.49 percent to 24.9, shares of Reliance Nippon Life Asset Management were down by 0.07 percent to 151.95.

By the end of September, the Reliance Group had cash and bank balance of 824 crores of rupees and debt of almost 32,700 corers of rupees.

The shares of the Reliance group fell just a day before when the in-principal agreement was signed by the Reliance Group with more than 90 percent of its Creditors. The agreement directs that the promoters cannot sell the pledged shares until 30th September. After this agreement was signed, the share prices of Reliance Infrastructure were up by 13.01 percent at 129.95 rupees, shares of Reliance capital also increased by 11.51 percent at 165.65 rupees on the Bombay Stock Exchange (BSE). The Reliance Communication shares were up by more than 12 percent at 6.15 on the BSE listing. Shares of Reliance Power stock rose by more than 9 percent at 11.70 rupees during the trade hours on Monday.

On Wednesday, there was a drop in the share prices of the Reliance Group due to Supreme Court hearing over the case between RCom and Ericsson. The top court ordered Anil Ambani and other two directors of Reliance Group to clear the dues of Ericsson amounting to 453 crores of rupees within four weeks, if they fail to pay the amount then they will be jailed and they should remain in jail for three months. The Supreme Court also fined one crore of rupees on three of them, failing to deposit the amount will be awarded 1 month of imprisonment in jail. No sooner after the Supreme Court hearing the Reliance Shares starting to stumble.

The other two directors who have been convicted by Supreme Court are Reliance Telecom Chairman Satish Seth and Chairperson of Reliance Infratel Chhaya Virani.

Annie Webb

Annie Webb has held various roles with previous companies ranging from production editor, news editor to news writer. Recently, she joined FinancePlush team as a full-time news writer to cover financial news stories from around the world. She is also passionate about forex trading. In her free time, she loves to learn about new aspects of technical analysis.

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