Ambani groups gain Rs 90k crore on UPA mandate
The Ambani brothers — Mukesh and Anil — have emerged among the biggest beneficiaries of the people's mandate in favour of the Congress-led UPA government as their group companies added close to Rs 90,000 crore of wealth in just five trading sessions after the results were declared.business Updated: May 24, 2009 12:21 IST
The Ambani brothers — Mukesh and Anil — have emerged among the biggest beneficiaries of the people's mandate in favour of the Congress-led UPA government as their group companies added close to Rs 90,000 crore of wealth in just five trading sessions after the results were declared.
While market valuation of the Anil Ambani group rose by over 35 per cent, that of the companies belonging to the group led by elder brother Mukesh improved by over 12 per cent, against an overall market appreciation of close to 20 per cent during this period.
As a result, the nine listed companies of the two groups together accounted for about 12 per cent of the total gain in the overall investors' wealth, measured in terms of total market capitalisation of all the listed entities.
In absolute terms, Mukesh Ambani group recorded a bigger gain of over Rs 44,000 crore, against a gain of about Rs 43,800 crore for the Anil Ambani group.
In five trading sessions between May 18 and May 22 — after results of the general elections were declared on May 16 — the overall investor wealth rose by about Rs 7,51,000 crore — from Rs 38,07,000 crore to close to Rs 45,60,000 crore.
Markets were closed on May 16 and the next day because of weekend holidays and the first trading after the election results was held on May 18.
Since the poll outcome came in favour of a second term for the UPA government to be headed by Manmohan Singh, the Ambani groups together have seen their market cap rise by over Rs 88,000 crore — from about Rs 4,84,500 crore before the announcement of the election results to close to Rs 5,73,000 crore now.
Separately, the collective market-cap of three Mukesh Ambani group firms — Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure Ltd — has increased to close to Rs 4,07,000 crore.
At the same time, the total market-cap of six Anil Ambani group firms — Reliance Communications, Reliance Capital, Reliance Power, Reliance Infra, Reliance Natural Resources Ltd and Adlabs Films — has increased to about Rs 1,66,400 crore.
Among the companies from the two groups, the biggest rise in terms of percentage terms has been recorded by Reliance Capital, the market cap of which has surged by over 52 per cent during this period.
But in absolute terms, Reliance Industries has recorded the biggest gain of close to Rs 37,000 crore. RIL is the country's most-valued firm with a market-cap of about Rs 3,43,500 crore.
In the Anil Ambani group, Reliance Communications is the most-valued firm with a market-cap of close to Rs 65,000 crore.
None of the companies from the two groups saw a decline in their market-cap during this period.