ADAG stocks hammered
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Feb. 9: The ongoing 2G scam investigation and TRAI’s proposal to impose a stiff one-time payment for the extra spectrum given by former telecom minister, Mr A. Raja, have taken their toll on the companies that have been linked to the 2G scam.
They included the Anil Ambani group stocks that have hit a 52-week low, DB Realty whose promoter Shahid Balwa was remanded to CBI custody in Mumbai on Wednesday and Unitech. The ADAG group was hit by rumours which the company said were “baseless and spread by their rivals.” They said the “rumours were accompanied by vicious and illegal bear hammering of our listed stocks, to create panic and destabilise the markets.”
The Sensex closed down 182.93 points at 17,592.77 but the broader market also took a beating with 1,195 stocks on the National Stock Exchange closing in the red.
Only 131 stocks closed positive, Mr Anil Ambani said in a statement that they had in a formal complaint asked SEBI and the stock exchanges to “immediately investigate these illegal trades, and take appropriate action to safeguard the interests of our over 11 million investors.”
Reliance Communications closed at a 52-week low of Rs 90.65. A note put out by IIFL on Trai’s proposal said “Our estimate of the one time payment for Bharti, Idea and RCOM is $638 million, $383 million and $1billion respectively. For RCOM, the real liability is for the 4.4MHz of GSM spectrum given in 2008.
This hit the group further. ADAG group stocks being high beta stocks all the other group companies stocks also took a beating and fell between 9-19 per cent hitting their 52-week low. These included Reliance Mediaworks, and Reliance Broadcast Network. Unitech was down over 8 per cent while DB Realty closed down 11 per cent.
All these stock have had a bad run and underperformed the Sensex since Diwali. While the Sensex has lost 16.7 per cent since November 5 when it was 21,108, while RCom has lost 48 per cent, Reliance Capital 51 per cent, Reliance Power 32 per cent, and reliance Infra 49 per cent. DB Realty has lost 70 pr cent and Unitech 58 per cent.
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