The Anil Dhirubhai Ambani Group’s (ADAG) market valuation soared 14 per cent in the June quarter, the most among India’s top five business houses, making it the third most valued group in the country.
Anil Ambani-led Reliance ADAG’s market capitalisation (M-cap) was Rs 1,42,380 crore for the three-month period ended June 30, about 14 per cent higher compared to the March quarter.
The seven listed companies of ADAG — led by Reliance Power and Reliance Communication — made their investors wealthier by Rs 16,969 crore.
Elder brother Mukesh Ambani-controlled Reliance Industries, however, maintains its numero uno position, with a total M-cap of Rs 3,57,902 crore at the end of the June quarter.
Reliance pack shares have been rising ever since the warring siblings called a truce on May 23.
“After the Ambani brothers agreed to cancel all existing non-compete pacts, shares of their companies have surged, as both the groups can expand their business in different verticals and capitulate on their existing synergies. This in turn will benefit shareholders,” said a leading analyst.
Two of the Mukesh Ambani Group companies — RIL and Reliance Industrial Infrastructure — added Rs 5,102 crore and Rs 256 crore to their M-caps, respectively.
The analysis of M-cap of the top five business houses shows the Tata Group ranks second and is valued Rs 3.26 lakh crore at the end of June quarter. It fell three per cent compared to Rs 3.37 lakh crore in the March quarter.
The Tata Group companies listed on the stock exchanges include Tata Motors, Tata Steel and Tata Power.
Interestingly, except for the Ambani groups all other business houses saw erosion in their M-cap.
NRI billionaire Anil Agarwal-led Sterlite (Vedanta) Group ranks fourth. The group’s M-cap stands at Rs 1,31,522 crore, down 20 per cent against Rs 1,64,490 crore of the March quarter.
The June quarter was a turbulent period for metal sector,hence, the four listed companies of Sterlite group saw erosion in valuation.
Sterlite Industries lost 20 per cent, Hindustan Zinc 19 per cent and Sesa Goa 25 per cent.
Bharti Group ranks fifth though its valuation eroded 16 per cent to Rs 99,970 crore.
Significantly, during the June 2010 quarter, stock market benchmark Sensex rose just about one per cent.
