With operations halted and factories closed, the coronavirus pandemic is not working out to be great for India’s richest man. Mukesh Ambani, Chairman of Reliance Industries, has seen his net worth tank 28% in the last two months, according to Hurun Global Rich List. As the stock price of Reliance Industries plummeted 25% in two months, Ambani’s net worth fell to $300 million each day, falling to $48 billion. With this Ambani is no longer among the top 10 richest men in the world, dropping down to the 17th position on the Hurun Global Rich List.
The share price of Reliance Industries stood at Rs 1,457 per apiece back in the first week of February. As bears took over Dalal Street the stock hit its 52-week-low at Rs 875 per share in the last week of March. The tale of Ambani is identical to many other industry captains. While Gautam Adani saw $6 billion or 37% of his wealth erode; Shiv Nadar, the Chairman of HCL has reportedly lost $5 billion of his wealth. Uday Kotak too suffered as the markets tanked, bringing his wealth down by $4 billion or 28%.
“India’s top entrepreneurs have been hit by a 26 per cent drop in the stock markets and a 5.2 per cent drop in the value of the rupee compared with the US Dollar. For Mukesh Ambani, it has been a perfect storm, with his wealth down 28 per cent,” Anas Rahman, Managing Director, Hurun Report India said.
From a global perspective, the sharp erosion in a wealth of Indian industrialists has pushed many down with Mukesh Ambani featuring as the only Indian in the top 100 billionaires list, even though he is the second biggest wealth loser in the world. LVMH’s Chief Executive is ahead of Ambani after his wealth was reduced by $30 billion by the coronavirus pandemic. The fall is such that even ace investor Warren Buffet could not save $19 billion of his wealth in the last two months. Others who have lost significant wealth include Bill Gates; Facebook founder Mark Zukerberg; Google’s Larry Page and Sergey Brin along with the US Billionaire Michael Bloomberg who recently ended his campaign to the Oval Office.
On the flip side, the report adds that Chinese billionaires have been making money while others are losing. While three Indian’s were nudged out of the top 100 list, six Chinese were added. The Indian market has corrected by 25 percent in the last two months as investors booked profits with the equity market in a free-fall. Indian equity market’s downfall has been aided by Foreign Institutional Investors, selling more than $15 billion in the month of March alone.