Despite Corus, RIL group overtakes Tata in market cap

Top ten groups have market cap of over $20 billion.

The Mukesh Ambani-led Reliance group ended 2007 by overtaking the Tata group in market capitalisation stakes "" and this despite the latter's acquisition of Corus steel.

The market value of the group's three listed companies aggregates Rs 5.23 trillion (one trillion = Rs 1 lakh crore).

Last year's number one, the Tata group, is now a distant number two with a market capitalisation of Rs 3.20 trillion.

If one adds the market cap of steel company Corus (which it acquired earlier this year and is now an unlisted entity) the Tata group's market capitalisation increases by Rs 72,941 crore to Rs 3.20 trillion. 
 

TOP 10 GROUPS BY MARKET CAP
Group	Promoters	Flagship	Market capitalistion (Rs crore)
			Dec 29,06	Dec 31,07	Change	% chg
Reliance	Mukesh Ambani	Reliance Ind	213,789	522,549	308,760	144.42
Tata	Tata trust	TCS	247,184	320,125	72,941	29.51
ADAG	Anil Ambani*	Reliance Comm	129,865	303,743	173,878	133.89
Bharti Enterprises	Sunil Mittal	Bharti Airtel	119,346	188,750	69,404	58.15
DLF	Singh	DLF	NA	183,066	NA	NA
A V Birla	Kumar Mangalam Birla**	Grasim Ind	72,907	128,561	55,654	76.33
Vedanta	Anil Agarwal	Sterlite	75,720	112,208	36,488	48.19
O P Jindal	Smt Savitri Jindal	Jindal Steel	18,078	83,216	65,138	360.31
Adani	Gautam Adani**	Mundra Port	26,972	79,150	52,178	193.45
Wipro	Anil Premji	Wipro	88,287	77,394	-10,893	-12.34
* Market cap adjusted for increase in equity capital ** including newly-listed companies

The Anil Dhirubhai Ambani Group (ADAG) is today the third largest group with a market capitalisation of Rs 3.03 trillion.

The ADAG group, which has five listed companies, could, however, move up to the number two position in the near future, after the listing of its company Reliance Power, which is likely to add market cap worth Rs 1,20,000 crore.

Reliance Power is expected to raise Rs 12,000 crore through an Initial Public Offering (IPO) next month, assuming an issue price of Rs 450-500 per share of Rs 10 paid-up.

While the top 10 houses have market cap of over $20 billion each, there are ten business groups in the list with a market cap of over $10 billion.

These include the Delhi-based Jaiprakash group with interests in cement and construction (Rs 57,553 crore), Subhash Chandra's Zee Entertainment (Rs 51,882 crore), GM Rao promoted Hyderabad-based GMR Infrastructure (Rs 45,053 crore), Vijay Mallya's UB group (Rs 45,047 crore), Kotak Mahindra group (Rs 44,601 crore), Mahindra & Mahindra group headed by Keshub Mahindra (Rs 42,153 crore) and Indiabulls promoted by Rajiv Rattan, Sameer Gehlaut and Saurabh Mittal (Rs 40,390 crore).

The Mukesh Ambani controlled Reliance group and Anil Ambani-led ADAG have outperformed the market in the past year (December 29, 2006-December 28, 2007) with annual returns of 144 per cent posted by the former and 134 per cent by ADAG.

The two brothers with a combined market cap of Rs 8.26 trillion account for 15.65 per cent (11.7 per cent in 2006) of the total market cap of the country's private sector.