Massive erosion of wealth due to poor performance leing to frequent rating downgres has forced irate shareholders of Anil Ambani Group companies to complain against manment and threaten to file a class action suit. Speaking at AMG of Reliance Power here on Monday, a shareholder even threatened to make history by filing country's first class action suit against group companies, if issues he raised are t dressed in next two-three months.

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Shareholder's complaint

shareholder, who claimed to be a corporate lawyer from city, also said he has lost over 90 percent of value of over Rs 3 crore investment in three of seven Reliance Group companies. He was particularly peeved at group chairman Anil Ambani pledging over 80 percent of his holdings in company, blaming him for b signalling. shareholder said he will marshal 10 percent shareholders to launch country's maiden class action suit, in which a group of complainants sues a defendant or a number of defendants on behalf of a group, or class, of absent parties.

Companies Act 2013 has a section that enables interested parties to file class action suits. But so far case has been filed under this provision. In West it is a common practice.

"If I do t get satisfactory replies to my questions, in next two-three months I will file a class action suit against RPower," shareholder warned Ambani. He claimed to have invested over Rs 3 crore in three group companies since 2005 and today value of his shares is only a fraction of that.

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"It is my hard earned money which I have put in company and your decision of pledging over 80 percent of promoter holdings since 2014 till date has destroyed me," shareholder said. It can be ted that as of Monday, seven publicly tred Anil Ambani Group companies h a combined market value of a paltry Rs 18,525.62 crore, of which close to Rs 16,000 crore are of Reliance Nippon AMC alone. once-flagship Reliance Communications is worst of all and at NCLT and closed down 1.28 percent to a paltry Rs 0.77 apiece with a m-cap of Rs 212.94 crore. Its 52-week high was Rs 18.60.

Ar one-time flagship Reliance Power, which h a dream-run with its mega IPO that was oversubscribed 72 times in February 2008, raising a whopping Rs 11,563 crore, today is drag on name of group. Its m-cap stood a low Rs 617.12 crore on a share value of Rs 2.20, after plunging 8.71 percent on BSE against a 52-week high of Rs 32.65.

Similarly, RInfra today tanked 12.3 percent to Rs 29.30 on BSE against a 52-week high of Rs 380.60, yanking down its m-cap to a low Rs 770.59 crore. Reliance Naval & Engineering with a share price of Rs 1.34 that too after a 4.69 percent rally closed with a m-cap of Rs 98.84 crore on Monday on BSE. Similarly, Reliance Capital tanked 12.32 percent to Rs 24.55 (from a 52-week high of Rs 319), pulling down its m-cap to Rs 620.38 crore. Reliance Home Finance, which will be shuttered by December, lost 4.5 percent to Rs 3.83 with a m-cap of  Rs 185.79 crore.

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Reliance Nippon Life AMC too shed 2.13 percent to Rs 259.80 after anuncement of closing its lending business, losing its m-cap to Rs 15,899.76 crore. shareholder also questioned rationale for paying 13.9 percent interest on borrowings through bond raising even as one company claimed to have reserves of over Rs 15,300 crore.

On promoter pledging, he also wondered if any of money so raised by Ambani family has been ploughed into any of group companies. Ambani, chairing meeting, sat patiently on dais as shareholder launched scathing attack. Company officials tried to stop him citing rules that prohibit a speaker from taking longer, but Ambani allowed him to continue. shareholder frequently found support from fellow shareholders in his 15-minmute speech, but was also shouted down by a few. shareholder was peeved at rating downgres, claiming that he lost Rs 37 lakh of his portfolio in a single episode of a downgre by Care Ratings recently.

He also wondered how company could t pay on a borrowing of Rs 63 lakh from a bank despite sitting on huge pile of cash, and inste chose to take igminy of recognition as a defaulter. angry shareholder found support in two ors. first of his supporters said Ambani should give a clear picture of status of firm and maintain utmost transparency. second wondered why despite taking over RPower's city distribution business in financial capital, ani Transmission has a market capitalisation of Rs 15,000 crore even as RPower, which is still holding on to same business in Delhi, is still valued at under Rs 700 crore.

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Anil Ambani's reply

In his reply to shareholders, Ambani said, "we will look at all suggestions me and issues raised we will deeply think about issues and will do our best to dress some of m," Ambani ded. Reliance Power AGM was third along six AGMs held by group companies on Monday. Even though fortunes at bourses of first two companies--Reliance Capital and Reliance Infra--are t so good, shareholder voiced any particular concerns at those AGMs. Distraught shareholders also raised concerns in RCom's AGM, and sought clarity from resolution professional who was chairing meeting.