Anil Ambani – Rise of a Phoenix

There is a fall from the grace of his group in the last twelve years, nevertheless, the position is getting better and is much better than a year ago. This is in spite of the continuous bashing by a fifth-generation politician.
Anil Ambani - Rise of a Phoenix
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Let us accept the truth that Mr. Anil Ambani is one who is a victim of an adverse business environment, where a range of external factors from stiff competition to betting on the wrong technology to an economic slowdown had gone against him. Life certainly has not been kind for him. Imagine once the sixth richest person in the world, with a wealth of USD 42 billion has recently given a testimony in a British court that his net worth was zero. However, he is not someone who squandered away his wealth or flew away in his private jet to a foreign country.

There is a fall from the grace of his group in the last twelve years, nevertheless, the position is getting better and is much better than a year ago. This is in spite of the continuous bashing by a fifth-generation politician. The recent developments initiated by Anil Ambani’s new lieutenants, not to exclude his sons, indicate a change for good. These are considered to be rational decisions. We believe that there will be consolidation in the group. Some of the companies not doing well are likely to meet RCom’s fate while others will lead the revival of the group.

The shares of Reliance Group of Companies (earlier known as Reliance Anil Dhirubhai Ambani Group) are soaring and most of them hitting the circuit. This has definitely boosted the net worth of its promoter, Anil Ambani. The combined market cap of the companies controlled by him has increased by a whopping 330 percent in the last three months. The current market cap of group companies is around Rs 10,000 crore up from Rs 3000 crore at the start of March 2021.

It is a pale shadow of what his companies commanded market cap in the year 2008, when he was the sixth richest person in the world according to Forbes, with a wealth of USD 42 billion. It was an era when he was credited with India’s largest IPO, that of Reliance Power, which in 2008 was subscribed in less than 60 seconds, the fastest in the history of Indian capital markets to date.

There is a fall from the grace for his group in the last twelve years, nevertheless, it is much better than a year ago when promoter Anil Ambani, who in the year 2020 told a British court that his net worth was zero.

About the author: IE&M Team
IE&M Team
Indian Economy & Market is an Indian media and information platform producing data-backed news and analysis on all the vital elements at the intersection of the economy, stock markets, mutual fund, insurance, commodities, currency, technology, startups and business.

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