Adani earns Rs 1,002 cr a day, now Asia's 2nd richest: IIFL Wealth-Hurun India report
New Delhi: The shares of Adani Group companies plunged Monday after reports that accounts of three foreign portfolio investors (FPIs), who had substantial investments in these companies, had been frozen.
This effectively wiped off over $6 billion of the group chairman Gautam Adani’s wealth, just days after he became the second richest man in Asia after Mukesh Ambani, Chairman of Reliance Industries.
Adani’s rise in net worth was fuelled by a phenomenal rise in the market capitalisation of Adani Group companies led by a sharp increase in share prices of its listed firms.
Last week, a Bloomberg analysis pointed out that Adani added over $43 billion taking his net worth to $77 billion in 2021, catapulting him ahead of Chinese billionaire Zhong Shanshan, who heads a bottled water company in China. A massive increase in share prices of these stocks had led analysts to question if the shares were overvalued.
But at the end of the day, the market capitalisation of Adani Group’s companies will keep changing based on stock price movement. The gains or losses from shares and the wealth projected are all notional until Adani chooses to sell these shares to book profits or losses as the case may be.
For instance, after Adani’s net worth fell by more than $6 billion in a single day Monday, pulling down his net worth to around $71 billion from $77 billion last week, stocks of the companies rebounded and recovered some of its notional losses Tuesday with Adani’s net worth improving to $73 billion.
This came after the company informed the stock exchanges that the accounts of the FPIs were not frozen, according to communication received by it from the National Securities Depository Limited (NSDL), a securities depository body.
Despite the plunge in share prices, Adani remains the second richest Asian after Ambani as of 15 June, the Bloomberg Billionaires Index shows.
Ambani’s net worth has also increased substantially over the last one year, with Reliance Industries’ share price surging due to massive foreign direct investments into Jio Platforms, a subsidiary of Reliance Industries.
Bloomberg data shows that Ambani added more than $30 billion to his net worth over the last one year taking his net worth to over $86 billion.
Share price of Reliance Industries rose 110 per cent since April 2020 taking its market capitalisation to Rs 14.26 lakh crore. The promoter group led by Mukesh Ambani holds 50.58 per cent of the company’s shares, according to the shareholding pattern available on Bombay Stock Exchange’s website.
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