Among domestic investors, mutual funds (MFs) have seen an erosion of Rs 382 crore on their equity investments over a one-month period.
Life Insurance Corporation
of India (LIC) is also staring at losses of Rs 757 crore during the same period. The insurer held a stake in most of the group firms — 4.16 per cent stake in Reliance Capital, 6.3 per cent in RInfra, 4 per cent in Reliance Power, 7.9 per cent in Reliance Naval
and Engineering, 5.96 per cent in Reliance Communications
(RCom), and 2.17 per cent in Reliance Home Finance.
According to experts, the fall in share prices could have triggered some margin calls, leading to some of the pledged shares getting off-loaded in the market.
firms have a high percentage of promoter shares pledged. According to data compiled by BS Research Bureau, RInfra, Reliance Power
and Reliance Naval
have 80-100 per cent of the promoters’ shares pledged, as on December 31.
Meanwhile, a note by Edelweiss points out that promoters’ pledging in RInfra
has risen from 66 per cent to 83.6 per cent over the last five quarters.
In a clarification to the exchanges on Thursday, Reliance Naval
said the company cannot comment on the movement in prices on the bourses. "Appropriate disclosures will be made in accordance with applicable regulations, as and when a disclosable event occurs." The group did not comment on the developments.
According to bulk deal data on the NSE, L&T Finance sold Rs 234 crore worth of shares of Rcom, Reliance Capital, RInfra
and Reliance Power, on Thursday. The share sale accounted for 2.3 per cent of the market cap of these group firms.
Among FIIs, CLSA Global Markets
held 1.53 per cent stake in RCom, while entities related to Morgan Stanley
held 3.23 per cent stake in Reliance Naval.
Among MFs, Aditya Birla Sun Life Trustee held 1.72 per cent stake in Reliance Home. HDFC Trustee Company and IIFL Special Opportunities Fund held 3 per cent and 1.3 per cent, respectively, in Reliance Nippon Life Asset Management.
During the week, the companies have seen a sharp fall triggered by news
that RCom will file for insolvency at the National Company Law Tribunal.
With the exception of Reliance Nippon, shares of the group firms have fallen 28-58 per cent during the week.