Stock prices of the Anil Dhirubhai Ambani Group (ADAG) companies plumbed new depths on Friday after the Central Bureau of Investigation (CBI) said it was investigating the role of the group chairman in the 2G telecom scam.
The federal investigators spooked the markets even more after raising the prospect that three ADAG executives currently being held in Tihar jail could turn approvers in the case.
The Reliance Communications and Reliance Power (RPower) scrips hit new lows, falling 8 per cent to Rs 71.75 and 4 per cent to Rs 76.80, respectively, at Friday’s close on the Bombay Stock Exchange.
Reliance Capital, the group’s financial arm, dropped as much as 12 per cent to Rs 315.20, while Reliance Infrastructure fell 7 per cent to Rs 373.55 and Reliance Mediaworks by 6 per cent to Rs 90.95.
The 30-share Bombay Stock Exchange (BSE) Sensex fell 244 points to 16453 points on Friday.
ADAG stocks have been battered in the stock markets this year and have lost nearly half of their market capitalisation.
The Anil Ambani group scrambled to limit the damage. In a statement, the ADAG group denied its involvement in the 2G telecom scam but that did not stop investors from selling the stocks.
The statement said none of the ADAG companies, including Reliance Telecom, had illegally benefited from the sale of the 2G licences in 2008.
ADAG also denied that the three arrested executives — group managing director Gautam Doshi and senior vice-presidents Surendra Pipara and Hari Nair — had expressed any intention to turn app rovers.
“The CBI is now raising (these) new issues to oppose bail to the three Reliance executives,’ the statement said.
The three Reliance executives have been accused of breaking rules by using Swan Telecom as a front company to bag additional licences and spectrum from Reliance Telecom.
However, it was not all bad news for the Anil Ambani group on Friday.
The RBI gave its approval for RPower to raise $2.2 billion, or Rs 11,000 crore, from the US Exim Bank and Chinese banks that will go towards funding the company’s 3,960MW Sasan power project in Madhya Pradesh.
