Mukesh Ambani has lost at least $17 billion in 26 days as Coronavirus fears dent RIL shares
Mukesh Ambani lost a whopping $17 billion within 23 days after growing panic about novel coronavirus crashed the stock markets.
Mukesh Ambani was the second richest person in Asia with a networth of $57.9 billion until February 19 ‘20. However, his net worth fell to $40 billion (March 12).
Nearly three-fourths of RIL’s profit comes from oil and petrochemicals.
Reliance Industries’ billionaire promoter Mukesh Ambani lost a whopping $17 billion within 26 days after growing panic about novel coronavirus crashed the stock markets.
According to the Bloomberg Billionaire Index, Mukesh Ambani was the second richest person in Asia with a networth of $57.9 billion until February 19 ‘20. However, his net worth fell to $40 billion on March 12.
RIL’s share price slumped as much as 15.4% between March 6 and 13, and its market cap fell to ₹7 lakh crore,
losing its tag as India’s most valued company to TCS. As a result, Ambani also lost $5.8 billion of his personal wealth on March 9, according to the Bloomberg Billionaire Index.
Ambani also lost the tag of ‘Asia’s richest man’ to internet billionaire Jack Ma.
Until few weeks back, Hurun calculated his riches at $67 billion as the world’s ninth-richest man along with Steve Ballmer, the former Microsoft head.
Ambani, however, has bigger problems. While his telecom and retail businesses are going strong, his oil refining business is directly linked to the price of crude oil.
As much as three-fifths of RIL’s operating profits come from oil and petrochemicals, according to Bloomberg Quint. And crude oil is hostage to the ongoing price war initiated by Saudi Arabia against Russia and US, keeping RIL’s shareholders on the edge.
Making matters worse, projections of an impending global economic recession are increasing and that is bound to affect one and all. Indian stock markets have lost at least ₹33 lakh crore in a month as fears of a Coronavirus-led slowdown are fast spreading. As of March 13, there are 75 confirmed cases in India, according to worldometer.