Street signs: Reliance group vs Edelweiss, NBFC bonds, and more

Reliance Group, Edelweiss rift widens 

The tension between Anil Ambani’s Reliance Group and Rashesh Shah-led Edelweiss group has taken an ugly turn. Sources say, Reliance Group has removed Edelweiss as an investment banker for the initial public offering (IPO) of Reliance General Insurance. The move comes after Reliance Group blamed “misconduct” by lenders, including Edelweiss, led to wipe out of Rs 13,000 crore worth of value of group companies. Edelweiss said its actions were within legal boundaries, and dismissed the allegations against it as “false”. Earlier, Reliance General had dropped UBS and IDBI Capital as bankers to the IPO. An Edelweiss official said it has walked out of the IPO.

Samie Modak
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Trading interest in NBFC bonds

Samie Modak
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Primary market pain continues

Volatility in the markets and tepid response to the initial public offering (IPO) of Chalet Hotels could queer the pitch for other companies. About half-a-dozen companies were looking to launch their IPOs this month. Investment bankers say the condition continues to be challenging for new issue launches. “The sell-off in broader markets due to troubles have dampened sentiment. Also, the investor response to the recent IPO was less than expected,” said a banker. Last week, Chalet Hotels had a lacklustre stock market debut. Its Rs 1,640-crore IPO had managed to scrape through with just 1.6 times subscription and less than 5,000 investor applications.

Sundar Sethuraman