Mumbai, Jan. 17: Investors pummelled stocks of Anil Ambani group firms, spooked by Fridays consent order by the market regulator that had barred Ambani and four directors of his companies from secondary market transactions for 12 months.
On Sunday, Ambani had issued a clarification in which he said the Sebi order would not hurt the financials of his firms or impact their growth and fund-raising prospects.
Ambanis statement failed to reassure investors who started hammering the stocks as soon as the market opened for trading on Monday.
Stocks from his ADAG group ended with losses ranging from 4.77 per cent to 8.45 per cent with selling pressure even observed in those shares that were not connected with the Sebis order.
For instance, Reliance Capital was down 6.45 per cent to Rs 573.80, Reliance Broadcast Network plunged 6.18 per cent to Rs 72.90, Reliance Mediaworks by 8.45 per cent to Rs 182.05 and Reliance Communication ended 4.77 per cent lower at Rs 131.80.
On the other hand, shares of Reliance Infrastructure plummeted 7.84 per cent to close at Rs 735.70 on the BSE, becoming the worst performer on the 30-share benchmark.
During the day, the scrip hit a years low at Rs 714. Reliance Power, with which Reliance Natural Resources has been merged, fell 6.13 per cent to settle at Rs 137.90.
On Sunday, Ambani had said the group firms had settled the probe voluntarily and Sebi had not imposed any ban on the firms or their directors from participation in the capital market.
He said the two firms — Reliance Infra and RNRL — which had been barred from only making purchases of listed shares, had the flexibility to make primary issues.