Shares of Anil Ambani-led Reliance Group companies, including Reliance Capital, Reliance Communications, Reliance Infrastructure, Reliance Power and Reliance Home Finance, rallied up to 5 per cent on Tuesday.
The UK High Court on Monday dismissed an application for summary judgment by Chinese banks for a $680 million claim against Anil Ambani. The court, however, has asked Ambani's legal team to submit further evidence in his defence and prove that the claim by Chinese lenders holds no merit.
Boosted by the development, share price of Reliance Capital was locked in the 5 per cent upper circuit at Rs 11.90 on the Bombay Stock Exchange (BSE). In the last three trading sessions, the stock of the non-banking financial company (NBFC) firm has hit upper circuit limit of 5 per cent.
In a similar trend, shares of Reliance Infrastructure also reported a jump of 5 per cent, hitting its upper circuit limit of Rs 23.30 apiece on the BSE. The stock has rallied nearly 15 per cent in last three sessions.
The share of Reliance Communication was locked in upper circuit of Rs 0.85 with a surge of 4.94 per cent, while on the NSE the stock is locked at Rs 0.90 per share, up 5.88 per cent. RCom is currently under insolvency proceedings and the resolution professional has been tasked to complete the process by January 2020.
Among others, the share prices' of Reliance Power and Reliance Home Finance gained 4.75 per cent, and 0.75 per cent, respectively. On the contrary, Reliance Naval and Engineering's stock price fell 5 per cent to Rs 5.89 per share on the BSE.
Last month, three Chinese banks - Industrial & Commercial Bank of China Ltd (ICBC), China Development Bank and Export-Import Bank of China - reportedly sued Anil Dhirubhai Ambani in London for allegedly failing to repay $680 million of loans.Commenting on the court's order, the banks said: "We welcome the grant of a conditional order against Anil Ambani as we have always said his defence is not credible. This is a straightforward debt claim to recover outstanding loans made to RCom in good faith and secured by a binding personal guarantee given by Mr. Ambani. We now look forward to the swift resolution of the case at trial."
Meanwhile, Ambani's spokesperson said, "UK High Court has dismissed "summary judgement application of Chinese banks against Anil Ambani" in which the "Chinese banks had claimed $ 680 million from Ambani against Chinese banks' corporate loans to Reliance Communications Limited (RCom)."
The hearing in the matter took place on 7 November and the order was issued on Monday, the spokesperson added.
Edited by Chitranjan Kumar