Reliance ADAG cries against bear hammering

ADAG seeks IB probe in hammering of 23 infra stocks
Press Trust of India / New Delhi February 18, 2011, 17:31 IST

Anil Ambani-led Reliance Infra has sought an Intelligence Bureau probe into alleged hammering down of 23 infrastructure stocks by a "powerful stock market operator" for personal gains of hundreds of crores of rupees.

Besides itself and another group firm Reliance Power, the Anil Ambani group has also listed out companies like public sector giants NTPC, BHEL and NHPC, as also private sector entities like L&T, JSW Energy, Adani Power, Tata Power and Voltas Ltd in its letter to the IB, sources said.

Reliance Infra has claimed that the illegal bear cartel run by this stock market operator has caused a loss of over Rs 300,000 crore from the infrastructure sector stocks in a short period of less than 90 days ending February 9.
Other infra-sector companies listed out in the letter include Jaiprakash Associates, Neyvelli Lignite, GMR Infra, Lanco Indtatech, Jaiprakash Power Ventures, ABB Ltd, Crompton Greaves, Mundra Port, Torrent Power, Thermax, Cummins India, IRB Infra and GVK Power and Infra.

Seeking a probe and immediate action by the intelligence agency against those behind the 'bear hammering operation, the company blamed these operators of distorting Indian capital market in general and infrastructure sector in particular.

These operators have been accused of indulging in market manipulations and rumour mongering to destroy the confidence of investors for their own illegal and unjust enrichment.

The company is also believed to have identified the name of the market operator leading this cartel, based on the information from its stock market sources, and has said that he has accumulated huge wealth running into hundreds of crores of rupees in a very short span of time.

R-Infra is believed to have told IB that infrastructure sector has been identified by the government as a growth catalyst and a key driver to make it an economic super power.

Asserting that infrastructure companies need regulatory protection from market manipulative forces, the company has said that it was important for these companies to raise equity and debt resources to implement their projects.

Last week, Anil Ambani group MD Gautam Doshi had also blamed 'corporate rivals' and a bear cartel for market plunge.

Doshi had also said that the group was a victim of the illegal bear cartel that caused a loss of over Rs 3,00,000 crore for the infrastructure sector in past few weeks.

"We have written to SEBI, stock exchanges, and intelligence agencies to immediately investigate these concerted efforts to destabilise the capital markets, and create panic amongst investors," Doshi had said.

The group stocks lost considerably today also, with R-Infra and Reliance Power falling by over five%t each.

Another group firm Reliance Media Works fell by over 8%, Reliance Capital by 7%, Reliance Communications by 6.7%t and Reliance Broadcast by 5.7%

Why should these people cry when their companies shares are hammered.
The Reliance group may have given wealth to people but they have also cheated them.
Who doesn't remember the Reliance Power IPO.
Since then personally I will never apply for any Reliance ADAG IPO and I have exited all his shares which included Rcom and Reliance Power.
They make so many mergers and demergers that people are fooled and finally handed over one or two shares for which there is no point in going demat.
They form new companies, collect money and then wipe out the shares of that company by merging it into the parent company.
We all remember Reliance Petroleum and Reliance Industries episodes.
Anil Ambani has been the worst culprit and he should not cry if his companies are punished by bears, they deserve what they are getting.
I understand he did his MBA from some foreign university.
Seeing his performance, it speaks very poorly of the university.
There are some groups who also fool the people by these mergers and demergers and delisting scams.
The Essar group is also famous for this.
Any group which regularly comes to the market to mop up money creates suspicion.
The Modern group of the Guptas and the HDC (Hindusthan Development Corp), Modi group were two such examples.
You can see where they lie now.
The Suzlon, Unitech and DLF group also comes in this bracket.
When any group comes regulary to the market and collect money, they do not utilize the money judiciously. They mismanage it and the results are there for all to see.