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The recent crash in the Indian stock market has had a dramatic impact on the fortunes of the Ambani brothers. While Mukesh Ambani, one of the world's richest men, experienced a significant setback with his net worth plummeting by USD 1.62 billion (around Rs 13,612 crore) during the market crash, his brother Anil Ambani witnessed a remarkable turnaround.
The Indian stock markets, NSE and BSE, experienced a bloodbath throughout the week, with the Sensex falling by over 4,000 points. Investors lost Rs 16 lakh crore during this market crash phase. Amidst this turmoil, Anil Ambani's companies, Reliance Power and Reliance Infrastructure, saw a continuous rise in their stock prices. This unexpected surge in value stands in stark contrast to the losses suffered by Mukesh Ambani.
Reliance Power's stock price jumped from Rs 36 to Rs 53.64 in just 10 days, boosting the company's value by over Rs 4,000 crore. Similarly, Reliance Capital witnessed a significant upturn, growing its market capitalization from Rs 16,000 crore to Rs 20,000 crore. This remarkable turnaround can be attributed to Anil Ambani's successful financial strategies. Reliance Power has successfully become debt-free, while Reliance Infra has managed to slash its debts by a whopping 80%. This financial stability has led to a surge in orders and increased investor interest.
Prominent equity investors Sanjay Dangi and Sanjay Kothari are planning to invest a whopping Rs 925 crore in Reliance Power. This investment reflects the confidence investors have in the company's future prospects. Further bolstering Reliance Power's potential is its recent deal to harness 1,270 MW of solar and hydropower potential in Bhutan. This lucrative project is expected to generate significant revenue and further enhance the company's financial position.
The contrasting fortunes of the Ambani brothers highlight the dynamic nature of the stock market and the importance of strategic financial management. While Mukesh Ambani's wealth took a hit due to the market crash, Anil Ambani's companies thrived by leveraging sound financial practices and securing lucrative deals. This disparity showcases the potential rewards and risks associated with investing in the stock market.