Reliance Group, Edelweiss rift widens

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.