Mukesh Ambani holds his position as Asia’s richest  |  Photo Credit: Twitter
Mukesh Ambani, the Chairman and Managing Director of Reliance Industries Ltd (RIL) continues to hold the throne of Asia’s richest person as of Friday market closing prices. Ambani’s nearest rival for the position is Adani Group Chairman Gautam Adani who trails the former by a healthy $13 billion.
With a net worth of $91.4 billion, the chairman of India’s most valued company occupied 11th spot on the Bloomberg Billionaires Index while Adani, who leads a string of companies spanning infrastructure to green energy was at 13th spot on the index with a fortune of $78.1 billion as of November 27, 2021.
It is to be noted that positions on wealth indices see frequent changes because the net worth of their occupants are calculated based on the stock prices of their listed entities and their stake in these companies. A little movement in stock prices can take off or add billions of dollars of their promoters’ net worth.
Adani, buoyed by an astronomical growth in wealth since May 2020 due to massive growth stock prices of group companies has emerged as a close contender for the top position of ultra-rich in Asia. However, analysts say the RIL group is three times the size of Adani Group companies. Most Adani Group stocks such as Adani Transmission, Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone have increased manifold in the past year. While Adani group stocks may have a stellar run on the bourses, analysts say RIL is a relative powerhouse that is ripe for value unlocking in Reliance Jio Platforms and Reliance Retail.
Speaking with ET Now earlier Deven R Choksey, MD, KR Choksey Investment Managers said Mukesh Ambani’s group of companies are distributed across sectors with oil & gas and industrial products on one side which is oil and gas and chemical products and on the other side the consumer-facing businesses like Jio and retail businesses. The industrial and consumer-centric business ratio currently would be a 55-45 kind of mix.
“In case of Adani group level EBITDA would be around Rs 38,000-40,000 crore. In case of Reliance it is around Rs 1,15,000-1,20,000 crore,” added Choksey.
Choksey further said Adani group is mainly involved in infrastructure and power-related businesses. “Infrastructure is generally a high cash business once the capex programme is completed and that is why they are getting a relatively higher valuation,” he added.
RIL has relatively lower debt exposure as compared to Adani. The company managed to pared its debt by monetising
While Ambani has been the richest Indian more or less since 2015, his counterpart Gautam Adani is a relatively new entrant in the top 10 in India and Asia.
“At the current stock price, valuing the energy business at long-term average multiples, we are left with Rs 1,150 per share as imputed value of RIL’s stake in ‘Jio’ and ‘Retail’,” Jefferies said in a May 2021 report. RIL share has railed over 8% since then.
Also, RIL announced a foray into renewable energy with a planned investment of Rs 75,000 crore in the next few years.
The last two years of full of paradoxes when it came to wealth creation and its distribution. Amid booming stock markets globally, promoters of listed companies saw a consistent rise in their fortunes but widespread disruption due to Covid-19 lockdowns saw widespread annihilation of jobs. In 2020, the number of millionaires increased by 5.2 million to 56.1 million globally, Credit Suisse research found.
India gained 19 new billionaires in 2021 with a total population of people in the three comma club net worth at 140. India now ranks third on the list of countries with most billionaires pipping Germany which has 136.