ADAG moves to check stock plunge
Pummelled shares of the Anil Dhirubhai Ambani Group regained some lost ground on Thursday after Reliance Infrastructure announced a possible buyback while the group moved to address investors on speculation and rumours over its financial health and profitability. HT reports. After the bloodbath, reliefbusiness Updated: Feb 11, 2011 00:46 IST
Pummelled shares of the Anil Dhirubhai Ambani Group (ADAG) regained some lost ground on Thursday after Reliance Infrastructure announced a possible buyback while the group moved to address investors on speculation and rumours over its financial health and profitability.Reliance Infrastructure announced a board meeting on February 14 to consider a buy-back of shares that aims to boost share value, sending its shares up 9.5% on a day when the benchmark Sensex of the Bombay Stock Exchange fell 0.7% to close at 17,463.
"The underlying message is to reinstate the faith of the investors in the company," said Gaurav Dua, head of research at brokerage Sharekhan.
Other group stocks also rose or stayed stable. Reliance Communications rose by 1.8%, while Reliance Capital was up 1.5%.
On Wednesday, Reliance ADAG stocks fell by up to 19% resulting in a combined Rs11,233-crore erosion of market value on a single day.
Gautam Doshi, group managing director of the group said: "We have written to SEBI, the stock exchanges, and intelligence agencies to immediately investigate these concerted efforts to destabilise the capital markets and create panic amongst investors."
The company clarified that Reliance Infra has not received any queries from the Institute of Chartered Accountants of India on its financials.
"ICAI has simply asked for copies of audited balance sheets," Doshi said.