ⓘ Featured Image: Mukesh Ambani, Chairman & MD, Reliance Industries; Credits: GettyImages
As COVID-19 pounced the Indian stock markets, Mukesh Ambani of Reliance Industries in April lost $13.2 billion in his wealth. As a result, he was dropped from being one of the top 10 richest people to 21st richest person in the world by Forbes.
Fortunately, he has revived from it and found his place as the 9th richest person in the world by Forbes yesterday. On Friday, the market capitalisation of Reliance Industries Limited (RIL) crosses INR 11-trillion, therefore Mukesh Ambani’s net worth jumped from $36.8 billion to $64.6 billion. Ambani is now ahead of Google’s founders Larry Page and Sergey Brin, who hold 10th and 11th place respectively in Forbes list of richest people globally.
Reliance has a net debt of INR 1.61 trillion as of March 2020. But the company revived from it by raising INR 1.68 trillion by giving a 24.7 percent stake of Jio Platforms (the telecom arm of Reliance) to the new shareholders including Facebook, and sovereign wealth funds from Saudi Arabia and the UAE and more.
Commenting on the development, Ambani in a statement said,
“Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance. Therefore, on the proud occasion of becoming a net debt-free company, I wish to assure them that Reliance in its golden decade will set even more ambitious growth goals, and achieve them,”
Rajiv Sharma, head of research, SBICAP Securities said,
“Reliance turning net-debt free ahead of schedule is a positive catalyst and will help sustain the valuation. The Rs 1.68 trillion fundraising gives the company ability to invest and experiment in new business categories. No other Indian corporate is so well placed to tap new opportunities,”