Mumbai: Behind the slump in the annual profit of the Reliance Group’s flagship firms Reliance Communications Ltd (R-Com) and Reliance Capital Ltd (R-Cap) is the larger issue of a decline of the market value, investor base, even employees of the Anil Ambani-controlled conglomerate that has been hit hard by ongoing investigations of its involvement in the so-called second-generation (2G) scam and rising debt.
Executives at the group’s various firms downplay the decline in market capitalization and pass off the fall in number of employees to historical inaccuracies.
Different perspectives: A file photo of Anil Ambani at a news conference in New Delhi. Pankaj Nangia/Bloomber
Analysts think the problems run deeper.
While the Anil Ambani-led companies may be fundamentally sound, the overhang of negative news flow on several fronts has taken a toll on the investor base as well as market value, says Shishir Bajpai, senior vice-president at IIFL Private Wealth.
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