New Delhi -°C
Today in New Delhi, India

Dec 16, 2019-Monday



Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

Monday, Dec 16, 2019

$20 bn wiped off from 10 richest Indians' groups

Indians' new-found dominance in the world's richie-rich club does not seem to have impressed the bourses, with the market value of companies led by ten richest from the country dipping by over $20 billion.

business Updated: Mar 09, 2008 14:14 IST


Indians' new-found dominance in the world's richie-rich club does not seem to have impressed the bourses, with the market value of companies led by ten richest from the country dipping by over $20 billion ever since the salutation came from the US business magazine Forbes.

In its annual list of world's billionaires, Forbes said last week on March five that Indians account for the maximum number of four billionaires among ten richest in the world - up from just one a year ago.

The magazine identified a total of 53 billionaires from India with a combined net worth of USD 340.9 billion, which included a hefty share of nearly two-third or USD 228.6 billion with the ten richest Indians.

However, a weak stock market after the list's release eroded about Rs 80,000 crore (USD 20 billion) from the market value of groups led by these ten -- thus wiping off over USD 10 billion or about five per cent of their personal wealth.
The ten richest Indians, as named by Forbes, are Lakshmi Mittal, Mukesh Ambani, Anil Ambani, K P Singh, Shashi and Ravi Ruia, Azim Premji, Sunil Mittal, Kumar Mangalam Birla, Ramesh Chandra and Gautam Adani. The first four are also among the world's ten richest, a feat achieved by only Lakshmi Mittal last year.

After March five, when the list was published, there has been just one day of trading in Indian stock market - March 7, while the global markets have traded for two days.

Close to 30 companies belonging to the groups led by ten richest Indians saw their market values dropping by up to 15 per cent on March 7, barring a few like Reliance Communications (up 3 per cent) and Bharti Airtel (up 0.15 per cent) that managed to close with gains on the day.

Among these ten groups, loss has been biggest at about USD 9 billion for ArcelorMittal, followed by Rs 15,300 crore (over USD 3 billion) for Anil Ambani group and about Rs 10,500 crore (USD 2.5 billion) for the conglomerate led by Mukesh.

Besides, Ramesh Chandra-led Unitech lost about Rs 5,000 crore, K P Singh-led DLF and the group led by Kumar Mangalam Birla lost close to Rs 4,000 crore (USD one billion) each, Azim Premji-led Wipro saw an erosion of about Rs 2,300 crore and Gautam Adani-led group also lost close to Rs 1,800 crore.

Of the total USD 10-billion loss for ten richest Indians, wealth of Lakshmi Mittal alone is estimated to have dropped by USD 4.1 billion in two days of trading after March five.

Anil and Mukesh Ambani are estimated to have lost about USD two billion and USD one billion respectively, while losses were between USD 350-900 million for others, barring Sunil Mittal who is estimated to have seen an increase of about USD 15 million due to rise in the share price of Bharti Airtel.

However, net worths of three among ten richest Indians - Lakshmi Mittal, Ruias and Kumar Birla - have actually risen from levels reported in Forbes list, despite losses suffered by each of them since March five, taking into account the movement in the market values of groups led by these people.

Forbes list prepared the net worth on the basis of market values for February 11 and calculated Mittal's worth at USD 45 billion. This is estimated to have risen by USD 3 billion, even after factoring in the loss of past two days.

Prior to the release of Forbes list, Mittal's wealth had risen to about USD 52 billion as market value of ArcelorMittal rose from USD 98.3 billion on February 11 to USD 114 billion on March four. Currently, it stands at about USD 105 billion.
Besides, the net worth of Ruias and Kumar Mangalam Birla are estimated to have increased by USD 300-800 million beyond the levels mentioned in the Forbes list.