Reliance Group, Edel­weiss rift widens

Business Standard - - THE SMART INVESTOR - SAMIE MODAK

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 ~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.

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