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    Edelweiss Financial shares reel despite clarification on investment in Kohinoor Group

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    Edelweiss Financial shares reel despite clarification on investment in Kohinoor Group

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    Shares of Edelweiss Financial Services fell as much as 13 percent to Rs 93 on Friday after the company said the Enforcement Directorate (ED) is examining an investment made by its unit Edelweiss Asset Reconstruction Company (ARC) in Kohinoor Group.

    Shares of Edelweiss Financial Services fell as much as 13 percent to Rs 93 on Friday following reports the Enforcement Directorate (ED) is examining an investment made by its unit Edelweiss Asset Reconstruction Company (ARC) in Kohinoor Group.
    The investigation, for the period of 2005-12, is part of the ED probe into alleged irregularities in awarding loans and investment made in the real estate firm by beleaguered Infrastructure Leasing & Financial Services (IL&FS).
    Following media reports, Edelweiss group, in a statement on Friday, said it had no exposure to Kohinoor during the concerned period.
    Further clarifying on its exposure, the company said Edelweiss ARC had participated in public auctions held after 2015 during which it bought the loans extended loans to Kohinoor Square project and its exposure is about Rs 120 crore invested under the 15:85 structure.
    With the intention of completing the project and providing relief to both the small business owners, home buyers, and banks, Edelweiss ARC took the company through the IBC process, it said.
    "A plan was approved by NCLT that would deliver unit owners their houses and small offices along with payment to lenders. The project is moving at a fast pace and is nearing completion with small shop owners having already been offered possession. The resolution of the asset is also on track to provide all lenders with maximum possible recovery," Edelweiss said in a regulatory filing.
    The company said the ED had asked for some information and the same was provided by Edelweiss.
    At 12:05 PM, the stock as trading 6.8 percent lower at Rs 99.50 as compared to a 0.22 percent fall in the S&P BSE Sensex.
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