Experts see shares of Mukesh, Anil group cos gaining
Market analysts were gung-ho about the truce between warrring Ambani brothers and said shares of companies belonging to groups of both Mukesh and Anil are likely to spurt when markets resume trade from Monday.
"The move is good for shareholders of both the groups as they will now concentrate more on their businesses rather than fighting with each other," SMC Capitals Equity Head Jagannadham Thunuguntla said.
He said the uncertainty for shareholders of the two groups is now over and the move could be seen as integration of businesses of the two groups.
Bonanza Portfolio Assistant V-P Avinash Gupta said, "The cancellation of non-compete arrangements is good for both the groups. Scrips belonging to the two groups are likely see positive reaction tomorrow."
"A positive reaction is likely in the share prices of the companies belonging to the two groups," Thunuguntla added.
KPMG Execurive Director (Advisory) Arvind Mahajan, said, "This is a far-reaching and sensible approach that is a good development for corporate India ... it is good for the market sentiment. The flexible approach with regard to non-compete agreement is a positive development for shareholders and the overall market."
Mukesh Ambani group's flagship firm Reliance Industries and Reliance Industrial Infrastructure are listed on stock exchanges, while Anil Ambani Group's listed companies are Reliance Capital, Reliance Communications, Reliance Infra, Reliance Power, RNRL, Reliance MediaWorks and Reliance Media World.
Striking a cordial note, the Ambani brothers on Sunday agreed to dump their differences and non-compete agreements saying this would eliminate any room for further "disputes".
Announcing that they would also expeditiously negotiate gas supply agreement in accordance with the Supreme Court order earlier this month, the groups of both Mukesh and Anil vowed to fulfill vision of their father Dhirubhai Ambani.
"All existing non-compete agreement between the two groups executed in January 2006 cancelled," Anil Ambani group said in a statement.
RIL and Reliance ADA Group are hopeful and confident that all these steps will create an overall environment of harmony, co-operation and collaboration between the two groups, thereby further enhancing overall shareholder value for shareholders of both groups, the RIL statement announcing the truce said.
Shares of RIL had closed at Rs 995.70, down 0.42 per cent on Bombay Stock Exchange on Friday, the last trading session.
Four scrips belonging to ADAG ended down on Friday in the range of 1-5 per cent, while three firms of the group (RPower, RInfra and RCap) closed higher in the range of 0.04-1.78 per cent on the BSE.