Mukesh Ambani loses Asia wealth crown to Jack Ma in $5.8 billion rout

News Network
March 10, 2020

Mar 10: Indian energy tycoon Mukesh Ambani is no longer Asia’s richest man, relinquishing the title to Jack Ma after oil prices collapsed along with global stocks.

The rout, exacerbated by mounting fears that the spread of the novel coronavirus will thrust the world into a recession, erased $5.8 billion from Ambani’s net worth on Monday and pushed him to No. 2 on the list of Asia’s richest people, according to the Bloomberg Billionaires Index. Ma, the Alibaba Group Holding Ltd. founder who relinquished the No. 1 ranking in mid-2018, is back on top with a $44.5 billion fortune, about $2.6 billion more than Ambani.

Oil plunged the most in 29 years on Monday as Saudi Arabia and Russia vowed to pump more in a struggle for market share. The slump comes just as the coronavirus is spurring the first decline in demand in more than a decade. That raises questions about whether Ambani’s flagship Reliance Industries Ltd. will be able to cut net debt to zero by early 2021, as he has pledged. The plan hinges on a proposal to sell a stake in the group’s oil and petrochemicals division to Saudi Arabian Oil Co., the world’s biggest crude producer.

While the coronavirus has curtailed some of tech giant Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps.

Reliance Industries, by comparison, has no such silver lining. The Indian conglomerate’s shares plunged 12% on Monday, the most since 2009, extending this year’s decline to 26%. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.

Ma reclaims crown after Reliance shares were pummeled in 2020.

Few of the world’s billionaires fared well in Monday’s collapse as the S&P 500 Index and Dow Jones Industrial Average each plunged more than 7.5%, the most since the 2008 financial crisis, threatening to end the longest bull market in history. But no one did worse than those whose fortunes are underpinned by oil. Wildcatter Harold Hamm’s fortune was cut almost in half to $2.4 billion and fellow oil magnate Jeff Hildebrand lost $3 billion, bumping both from Bloomberg’s 500-member wealth ranking.

In a pivot toward new businesses such as telecommunications, technology and retail, Ambani’s Reliance Industries has piled on billions of dollars of debt over the years.

It spent almost $50 billion -- most of it funded by borrowings -- to build Reliance Jio Infocomm Ltd., which became India’s No. 1 wireless carrier within about three years of its debut. As the mobile venture took off, Ambani also unveiled plans for an e-commerce empire to rival Amazon.com Inc. in India.

Addressing concerns over the liabilities, Ambani pledged in August to cut the group’s net debt to zero from about $21 billion as of last March. The Aramco deal is crucial to that plan for which Reliance Industries has valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20% stake that’s for sale.

Signs of a potential delay to that deal unnerved some investors, hammering the stock since it touched a record high on Dec. 19.

Reliance Industries expected the Aramco transaction to be completed by March, but people familiar with the matter said in February that talks were still ongoing to bridge differences between the two parties over the deal’s structure.

Adding to the uncertainty, Indian Prime Minister Narendra Modi’s administration has petitioned a court to halt the proposed stake sale, threatening a key source of funds needed to pare net debt.

But Ambani, 62, may soon bounce back from the setback, said Harish H.V., managing partner at ECube Investment Advisors in Bengaluru, India.

“The game isn’t over,” he said. “Ambani has successfully built a robust business model which would keep him in the game. Moreover, his telecom business will start yielding results in coming years.”

Comments

SmR
 - 
Tuesday, 10 Mar 2020

The curses of the bank depositors savings which vanished with collapsing economy and fraudlent seems to have gradully affecting riches of Ambani's.

 

AU
 - 
Tuesday, 10 Mar 2020

in Holy Quran Allah says; but they plan and Allah plans, and Allah is the best planners..(Surah Al Anfal 8:30)

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News Network
March 5,2020

Mar 5: The Kerala government has given its nod to a proposal aimed at encouraging students aged between 18 and 25 years to take up part-time jobs while pursuing education so as to help them gain work experience and hone their skills.

The government has decided to accept the proposal as a policy decision at the Cabinet meeting held on Wednesday, an official press release said.

The aim is to ensure that in a fiscal, 90 days of work is assured for students in government departments, local body organisations, PSUs and private companies.

This will help in developing a work culture among students.

Honorariums will be given to students by the organisations employing them part-time, the release said.

Students aged between 18 and 25 years will be permitted to become part of the scheme which will help them to gain work experience and hone their skills, the release added.

In another decision, the government decided to release Rs 26 crore from the Chief Minister's disaster relief fund for providing compensation to farmers who suffered crop loss during the 2018 floods.

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Agencies
August 1,2020

Chandigarh, Aug 1: The death toll in the Punjab spurious liquor tragedy rose to 86 on Saturday even as Chief Minister Amarinder Singh suspended seven excise officials and six policemen, officials said.

The government also announced a compensation of Rs 2 lakh for each of the families of the deceased, they said.

Tarn Taran alone accounted for 63 deaths, followed by 12 in Amritsar and 11 in Gurdaspur’s Batala. Till Friday night, the state had reported 39 deaths in the tragedy unfolding since Wednesday night.

According to an official statement, the CM ordered the suspension of seven excise officials, along with six policemen.

Among the suspended officials are two deputy superintendents of police and four station house officers.

Strict action will be taken against any public servant or others found complicit in the case, said the chief minister, describing the police and excise department failure to check the manufacturing and sale of spurious liquor as shameful.

Nobody will be allowed to get away with feeding poison to our people, he added.

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Agencies
July 13,2020

Mumbai, Jul 13: In a significant landmark, the BrihanMumbai Municipal Corporation (BMC) has achieved a doubling-rate of 50 days for COVID-19 cases, a top official said on Monday.

This was possible because of the civic body's 'open testing policy', implying tests without prescriptions, making it the only city in the country to implement it.

"After the open testing policy, our testing has gone up from 4,000 to 6,800, daily. But the total positive cases have come down from 1,400 to 1,200 now," BMC Municipal Commissioner I.S. Chahal told IANS.

Of these 1,200 positive cases, the symptomatic cases are less than 200, so the BMC needs only 200 beds daily, the civic chief said.

Even the BMC's discharge rate now stands at 70 percent, and on Sunday, after allotting beds to all patients, there were still 7,000 COVID beds plus 250 ICU beds lying vacant, said Chahal.

For this achievement, Chahal gave the credit to the entire 'Team BMC' where - despite losing a little over 100 officials to the virus - civic officials and other Corona warriors are engaged 24x7 in controlling the pandemic for over four months.

Since the first case was detected in Mumbai on March 11 (after the state's first infectees in Pune on March 9) and the state's first death notched in Mumbai on March 17, the current Maharashtra Covid-19 tally stands at 2,54,427 cases and fatalities at 10,289, while Mumbai has recorded 92,988 cases with a death toll of 5,288.

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