It was only in January this year that Indian billionaires rubbed
shoulders with Warren Buffett & Bill Gates in the list of world's
richest. However, as the recent stock market turmoil shows, wealth can
evaporate. As the markets tumbled, so did the value of their holding
in the companies.
The current bear hug over the market has eroded more than one-third of
the net worth of India's top 10 promoters. The torchbearers of the
Sensex, including Mukesh Ambani, Anil Ambani, KP Singh and Sunil
Mittal, have seen probably the toughest time since their rise to fame.
In order to calculate a promoter's net worth, we have excluded the
cross holding among group companies.
The promoters of DLF have experienced the biggest loss of $ 25.1
billion in net worth since the beginning of January '08. It was only
last year that DLF's IPO came with much fanfare. It was the biggest
IPO then, and post listing, the stock price rose skywards making KP
Singh one of the richest men on earth. The stock market crash has
eroded all of DLF's post listing gains and it is trading below its
issue price.
It is interesting to note that the promoters of DLF are not the worst
hit when it comes to percentage loss. Ramesh Chandra of Unitech has
witnessed a staggering 66% erosion in his net worth.
ADA Group is also one among the worst hit. The networth of the
promoter Anil Ambani has almost halved. Some of his companies
including Reliance Capital, Reliance Natural Resources and Reliance
Communications were the darlings of the investors last year. This year
these stocks have led the pack of worst performing scrips.
Moreover, the controversial IPO from Reliance Power has compounded the
woes for Mr Ambani. Mukesh Ambani, the elder scion of the Ambani
family, has seen an erosion in net worth to the tune of $16 billion
translating to a fall of 30%.
The so-called 'new age businesses' like Suzlon Energy have not helped
its promoter Tulsi Tanti. His net worth is down close to 40%.
Buoyancy in metal prices could not help Anil Agarwal, the promoter of
Sterlite group either. The metal man of India saw more than a 20% drop
in the value of his holdings. This is despite the fact that metal
prices are enjoying the strongest bull run in last two decades. It
seems that the stock market turmoil has resulted in investors throwing
the fundamentals out of the window.
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