Reliance Group shares in demand; zoom up to 11.3%

New Delhi: Stocks of Reliance Group companies Monday zoomed up to 11.3 percent after the Anil Ambani-led Group reached a 'standstill agreement' with more than 90 percent of its lenders under which they will not sell any of the shares pledged by promoters till September.

Shares of Reliance Power zoomed 11.27 percent and Reliance Communications advanced by 10.91 percent.

Reliance Infrastructure jumped 7.40 percent while Reliance Home Finance gained 6.71 percent. Reliance Naval and Engineering soared 5.15 percent on BSE.

Reliance Capital gained 2.86 percent and Reliance Nippon Life Asset Management 2.64 percent.

Under the pact, the Group will pay the principal and interest amounts to the lenders as per the scheduled due dates.

It has also appointed investment bankers for part placement of the group's direct 30 percent stake in Reliance Power to institutional investors.

When contacted, a Reliance Group spokesperson said: "We are grateful to our lenders for believing in the intrinsic and fundamental value of our companies, and granting their in principle approval to standstill arrangements."

Under this in-principle standstill understanding, these lenders will not enforce security and will not sell any of the promoters' pledged shares till September 30, 2019 on account of lower collateral cover or reduced margin due to the recent unprecedented fall in share prices.