New Delhi: Ambani clan and stock markets have a close affinity with each other and the proof lies in over four-fold jump in the market value of the companies owned by Mukesh and Anil in last two years notwithstanding their separation two years ago this day.
Interestingly, the gains for investors during the two years of their separation of the business empire founded by late Dhirubhai Ambani have been more than double during the last two years they were together.
When the two brothers Mukesh and Anil reached settlement to part ways two years ago, the combined investors’ wealth in the group, measured in terms of market value of all listed companies, stood at about Rs 1,00,000 crore.
Two years later, the combined value of all the listed entities of the two groups has soared over four-fold to about Rs 4,30,000 crore -- representing a gain of about 3,30,000 crore in the investors’ wealth.
In comparison, two years before the separation, the group’s combined market value stood at Rs 50,000 crore, nearly half of the level, at which the two Ambanis decided to go their separate ways.
Interestingly, the collective gains of Rs 3,30,000 crore reaped by the investors in the two separate business groups in the past two years includes a significant portion of about Rs 1,50,000 crore coming from the new listed entities.
Anil Ambani group’s Reliance Communications, whose market cap stands at about Rs 1,00,000 crore, was not a listed company two years ago, while Mukesh Ambani group’s Reliance Petroleum, with a current market cap of about Rs 42,000 crore, also made its debut on the bourses after the separation.
The group, also debuted on the stock exchanges after separation as part of the settlement, under which it was spun off from Mukesh group’s flagship company Reliance Industries (RIL). It currently carries a market value of about Rs 5,000 crore.
RIL’s market cap has alone gained about Rs 1,50,000 crore to Rs 2,32,000 crore, from about Rs 82,000 crore two years ago. Between 2003 and 2005, when Mukesh and Anil were together, its market value had nearly doubled from Rs 44,000 crore.
The collective market value of the companies under Mukesh fold -- RIL, IPCL, RPL and Reliance Industrial Infrastructure Ltd (RIIL) stands at about Rs 2,80,000 crore, up from about Rs 86,200 crore two years ago from RIL, IPCL and RIIL. The total investors’ wealth in these three companies stood at about Rs 47,000 crore on June 18, 2003.
In comparison, the combined market value of the four Reliance group companies under the control of younger brother Anil Ambani -- Reliance Communications, Reliance Capital, Reliance Energy and RNRL stands at Rs 1,43,000 crore.
While Reliance Communications and RNRL were not separately listed in 2005 and 2003, the combined value of RCL and REL stood at about Rs 15,000 crore two years ago and at just about Rs 5,000 crore on June 18, 2003.
Interestingly, the overall stock market has also taken the split in positive stride. The BSE’s 30-share benchmark index, Sensex, had hit a record high soon after the settlement was reached in 2005, after keeping on a relatively subdued note for over six months during the dispute between the two brothers.
The Sensex crossed the 7,000-mark for the first time on June 20, 2005, the first trading day after the settlement, while it has more than doubled to over 14,000 level in the two years.