Mukesh Ambani loses over $2 billion and drops down four places in the billionaires list — that’s how important the RIL-Aramco deal is
- During the Reliance Annual General Meeting, the stocks of the company fell by over 6%, making Ambani lose over $2.5 billion in wealth.
- Ambani with a total wealth of $69 billion, has fallen behind Warren Buffet, Larry Page, Elon Musk, Sergey Brin all of whom he had beaten just in the last few days.
- During the AGM, Ambani also spoke about the delay in the deal with Saudi Aramco, which could have triggered the fall in stocks.
Ambani with a total wealth of $69 billion, has fallen behind Warren Buffet, Larry Page, Elon Musk, Sergey Brin all of whom he had beaten just in the last few days.
Source: Bloomberg Billionaires Index
|Jeff Bezos||$179 billion|
|Bill Gates||$117 billion|
|Bernard Arnault||$95.1 billion|
|Mark Zuckerberg||$91.2 billion|
|Steve Ballmer||$74.9 billion|
|Warren Buffet||$72.2 billion|
|Larry Page||$71.7 billion|
|Elon Musk||$70.6 billion|
|Sergey Brin||$69.5 billion|
|Mukesh Ambani||$69 billion|
Reliance Industries stocks were trading at ₹1973.3 at 2 pm on Wednesday when the AGM began, but during the next one and half hours by the time markets closed, the stocks were down to ₹1842.35. On Thursday morning, Reliance share price stood at ₹1851.90.
The fall in stocks came despite the fact that Reliance Jio got a $4.5 billion investment from Google, in the last of its investments for Jio Platforms.
During the AGM, Ambani also spoke about the delay in the deal with Saudi Aramco, which could have triggered the fall in stocks. He said that while the Saudi Aramco deal for equity investment in the O2C business has not yet taken off as per the original timeline, Reliance values the two decade long relationship with Saudi Aramco and is very committed to a long term partnership.
“One of the key reasons for the stock to correct post the AGM was the management's commentary that the Saudi Aramco deal has not progressed as per expectations and that the company will spin off their O2C business into a separate subsidiary. RIL and Saudi Aramco had signed a non-binding letter of intent in August 2019 wherein Saudi Aramco was looking at picking up a 20% stake in the O2C business at an enterprise value of $75 billion,” Jyoti Roy, DVP- Equity Strategist at Angel Broking told Business Today.
Other analysts too agreed.
“Deal with Saudi Aramco had not progressed as per the original schedule. Everyone was expecting a positive announcement on the deal progress. All other announcements are already known apart from google investment, plan to build affordable 4G smartphone and potential deployment of 5G services next year,” Abhijeet Bora, Senior Research Analyst at Sharekhan told Economic Times.
Mukesh Ambani AGM speech highlights — Reliance Industries announces Jio Glass, Google partnership and plans to build a new smartphone
INTERVIEW: Zerodha founder defends the ‘self-valuation’ of nearly a billion dollars — and why he never raised funds from investors
Popular on BI
- Air Canada, Emirates, Air India and other airlines resume flights to Toronto and the tickets are priced up to ₹5 lakh
- I flew on a $65 million Gulfstream G650ER private jet and saw why it's a favorite of tech billionaires like Elon Musk and Jeff Bezos
- Srei Group may leave a $4 billion hole in some of India’s biggest banks
- Mirror, mirror on the wall; when will you stop judging us all: asks Taapsee Pannu in her latest ad with SUGAR Cosmetics
- This Indian chef says he is making his entire month's salary from one Instagram video but for him it’s just a tool
- Evergrande’s impact on Bitcoin highlights how cryptocurrencies still have growing pains
- Paras Defence and Space Technologies IPO gets blockbuster demand from investors
- Sify Technologies to set up new data centres in Delhi, Mumbai and Bengaluru