Mumbai: 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 5 March 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 $340.9 billion, which included a hefty share of nearly two-third or $228.6 billion with the ten richest Indians.
However, a weak stock market after the list’s release eroded about Rs80,000 crore ($20 billion) from the market value of groups led by these ten, thus wiping off over $10 billion or about 5% 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 5 March, when the list was published, there has been just one day of trading in Indian stock market - 7 March, 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% on 7 March, barring a few like Reliance Communications (up 3%) and Bharti Airtel (up 0.15%) that managed to close with gains on the day.
Among these ten groups, loss has been biggest at about $9 billion for ArcelorMittal, followed by Rs15,300 crore (over $3 billion) for Anil Ambani group and about Rs10,500 crore ($2.5 billion) for the conglomerate led by Mukesh.
Besides, Ramesh Chandra-led Unitech lost about Rs5,000 crore, K P Singh-led DLF and the group led by Kumar Mangalam Birla lost close to Rs4,000 crore ($1 billion) each, Azim Premji-led Wipro saw an erosion of about Rs2,300 crore and Gautam Adani-led group also lost close to Rs1,800 crore.
Of the total $10 billion loss for ten richest Indians, wealth of Lakshmi Mittal alone is estimated to have dropped by $4.1 billion in two days of trading after March five.
Anil and Mukesh Ambani are estimated to have lost about $two billion and $1 billion respectively, while losses were between $350-900 million for others, barring Sunil Mittal who is estimated to have seen an increase of about $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 5 March, 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 11 February and calculated Mittal’s worth at $45 billion. This is estimated to have risen by $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 $52 billion as market value of ArcelorMittal rose from $98.3 billion on 11 February to $114 billion on March four. Currently, it stands at about $105 billion.
Besides, the net worth of Ruias and Kumar Mangalam Birla are estimated to have increased by $300-800 million beyond the levels mentioned in the Forbes list.