Anil Ambani group lenders not to sell pledged shares till September

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Mumbai, Feb 17: The promoter entities of the Anil Ambani Group have reached an in-principle standstill understanding with more than 90 per cent of its lenders under which the lenders will not sell the pledged shares till September this year.
As per the understanding, the lenders will not enforce security or sell any of the promoters’ pledged shares in the event of lower collateral cover or reduced margin due to the recent unprecedented fall in the share prices of ADA group’s operating companies.
According to a source, the Anil Ambani Group has promised to pay the principal and interest to the lenders as per the scheduled due dates specified in the loan agreements.
The group has also informed the lenders that it has appointed investment bankers to place a part of its direct 30 per cent shareholding in Reliance Power Ltd to target institutional investors. “The roadshows by the investment bankers will commence during the next week,” the source said.
The value of the promoter stake in Reliance Power, before the unprecedented fall in share prices, was more than Rs 2,500 crore, and would have cleared more than 65 per cent of total promoter borrowings.
Reliance Infrastructure Ltd holds 40 per cent equity in Reliance Power, and even after placement of its holding by the promoters, majority stake and control remains with the Anil Ambani Group
Nine lenders that have exposure to ADA promoter entities, had taken listed operating companies shares as collateral. After the company’s shares fell early this month, two lenders — Edelweiss and L&T Finance had invoked the pledge and sold the shares in the open market. This led to a domino effect with many listed ADA group companies losing half their values.