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Anil Ambani Loses Billionaire Tag As ADAG Shares Continue To Fall

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Eleven years ago, Anil Ambani was named the sixth richest man in the world. In 2019, he is out of the billionaire club.

On Monday, after a consecutive fall in stock prices, the total capitalisation of six Anil Dhirubhai Ambani Group companies came to Rs 6,196 crore, making chairman Anil Ambani's net worth less than $1 billion, according to an Economic Times report.

Anil Ambani Loses Billionaire Tag As ADAG Shares Continue To Fall

 

It should be noted that the debt-ridden group of companies have pledged a large number of promoter holdings to lenders.

The group has lost close to 90 percent of its total market capitalisation in the last few years as shareholders continued to lose trust. In January 2008, Reliance Communication's (the group's promising venture back in the day) market cap stood at Rs 1,65,917 crore and each share had hit a peak price of Rs 792.38. On 18 June 2019, its stock closed at Rs 1.50/share and had a market cap of Rs 412 crore.

Last Tuesday, Ambani said that his group had repaid over Rs 35,000 crores in loans in the last 14 months, and said that the future payment obligations would be met in a timely manner. However, the next day PwC resigned as auditor of Reliance Capital and its Reliance Home Finance, alleging diversion of funds and fraud.

Later on Friday, Reliance Infrastructure reported its biggest quarterly loss ever, which would have been bigger if it weren't written off against the company's general reserve. It reported a net loss of Rs 3,301 crore, on making impairment and write-offs worth over Rs 8,500 crore. The company set off exceptional losses against Rs 6,616 crore from its general reserves.

Today, a Bloomberg report said that Chinese lenders, including China Development Bank, Industrial and Commercial Bank of China and Exim Bank of China have demanded at least $2.1 billion from RCom. According to its filing, China Development Bank is the biggest lender to RCom with loans worth Rs 9,860 crore, followed by the State Bank of India at loans worth Rs 4,910 crore.

As ADAG continues to remain in bad light in the media, the companies' market cap continues to erode.

Read more about: anil ambani adag adag stocks
Story first published: Tuesday, June 18, 2019, 16:24 [IST]
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