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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Agencies
March 3,2020

Kashmir, Mar 3: Four days after the National Investigation Agency made a major breakthrough in the Pulwama terror attack case over a year after the bombing, arresting one person who had sheltered the suicide bomber Adil Ahmad Dar, the NIA on Tuesday arrested two more people in the case - a father-daughter duo - who had also provided shelter to the bomber, officials said.

The NIA also claimed that the video of the suicide bomber was also recorded at their residence and released by the Jaish-e-Mohammad (JeM) terror group from Pakistan after the attack. An NIA spokesperson in Delhi said: "Two more persons have been arrested by the agency in the Pulwama terror attack case and they have been identified as Insha Jan, 23, and her father Tariq Ahmed Shah, 50, who works as a tipper driver."

The official said that the father-daughter duo have been arrested from Hakripora area in Pulwama for their involvement in the attack. The two were arrested on early Tuesday morning after senior officials of the NIA raided their house on Monday night.

A senior NIA official related to the probe told IANS: "The video of Dar, who attacked the CRPF convoy, was recorded at the home of the duo. And the same video was released soon after the Pulwama terror attack by the JeM terrorists from a Pakistani IP address."

He said, "The video was shared by them to their handlers in Pakistan."

The spokesperson further claimed that during the probe Tariq Ahmed Shah disclosed that his house in Hakripora area was used by Dar, Mohammad Umar Farooq, a Pakistani terrorist and IED maker, Kamran - another Pakistani terrorist (both were later killed in encounters with security forces), Sameer Ahmed Dar, a Jaish-e-Mohammad terrorist from Pulwama and Mohammad Ismail aka Ibrahim, a Pakistani terrorist.

The spokesperson said that Shah facilitated all the terrorists at his house for sheltering and for planning of the heinous attack on the CRPF convoy. He said Jan, daughter of Shah, facilitated the terrorists at their home and provided food and other logistics during their stay on more than 15 occasions for two to four days each time, in their house during the year 2018-2019.

"Initial interrogation has revealed that Jan was in constant touch with Farooq and was in communication with him over telephone and other social media applications," the spokesperson said. The fresh arrests of the two accused brings the total number of arrests in the case to three.

The arrests were made on the revelations of Shakir Bashir Magrey, who was arrested by the anti-terror probe agency on February 28. According to senior NIA officials, more arrests will be made in the coming days. Magrey, a resident of Hajibal, Kakapora in Pulwama district of Jammu & Kashmir, is an overground worker (OGW) of the Pakistan-based Jaish-e-Mohammad (JeM).

According to agency sources, Magrey allegedly provided shelter and other logistical assistance to the Pulwama suicide bomber. He was sent to 15 days' NIA custody by a special NIA court in Jammu & Kashmir on Friday. During interrogation, Magrey revealed that he had harboured Dar and Pakistan-based terrorist Mohammad Umar Farooq in his house from late 2018 till the attack in February 2019 and assisted them in the preparation of the Improvised Explosive Device (IED). His shop is located near Lethpora bridge, and as advised by Mohammad Umar, he started conducting reconnaissance of the movement of CRPF convoys on Jammu-Srinagar Highway in January 2019, and informed Mohammad Umar and Adil Ahmad Dar about it.

Magrey was also involved in modifying the Maruti Eeco car and fitting the IED into it in early February, 2019 and was introduced to Adil Ahmad Dar in mid-2018 by Mohammad Umar and he became a full-time OGW of JeM.

"During his initial interrogation, he disclosed that on several occasions, he collected and delivered arms, ammunition, cash and explosive material to JeM terrorists, including those involved in the Pulwama attack," the agency had said on February 28.

"During investigation, the make, model and number of the car used in the attack was quickly ascertained by NIA to be a Maruti Eeco through forensic examination of the tiny remnants of the car which were found at the spot during extended searches," the agency stated.

"This has been corroborated by accused Shakir Bashir Magrey. The explosives used in the attack were determined to be ammonium nitrate, nitro-glycerin and RDX, through forensic investigation," it said.

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News Network
January 27,2020

Jan 27: Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier.

The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.

Air India, which started in 1932 as a mail carrier before winning commercial popularity, saw its fortunes fade with the emergence of cutthroat low-cost competition. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt.

Indian regulations allow a foreign airline to buy as much as 49% of a local carrier, while overseas investors other than airlines can buy an entire carrier. The government didn’t find a single bidder when it tried to sell Air India in 2018.

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News Network
July 23,2020

New Delhi, Jul 23: With the highest single-day spike of 45,720 cases, India's coronavirus count crossed 12 lakh mark on Thursday.

The Union Ministry of Health and Family Welfare informed that 1,129 deaths were recorded in the last 24 hours.

The total number of coronavirus cases stand at 12,38,635 including 4,26,167 active cases, 7,82,606 cured/discharged/migrated. The cumulative toll has reached 29,861 deaths.

Maharashtra has reported 3,37,607 cases, highest in the country followed by Tamil Nadu with 1,86,492 cases. Delhi coronavirus count has reached 1,26,323 cases.

According to the Indian Council of Medical Research (ICMR), 1,50,75,369 samples were tested till July 22 out of which 3,50,823 samples were tested yesterday.

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