Business tycoon Mukesh Ambani’s net worth dropped by $5 billion as Reliance Industries Ltd.’s shares tumbled to the lowest price in the last 3 consecutive months also following a drop in quarterly profit.
The stock of India’s most significant company fell at least 6.8 percent in Mumbai on Monday. The shares have been slipping since May. As a consequence of the fall, Ambani’s wealth was cut down to approximately $73 billion. However, the S&P benchmark only declined by 0.7% at the BSE Sensex.
A decline of 15% in quarterly profit to 95.7 billion rupees was reported by the refining-to-retail conglomerate late on Friday. Due to the pandemic, the demand for fuel suffered, leading to a fall of 24% to 1.16 trillion rupees in revenue.
Reliance’s gross refining margin from a barrel of crude oil into fuel fell to $5.7 per barrel in the third quarter. Last year the price was $9.4 per barrel. However, in the same period, the profit in its telecom subsidiary tripled.
As Reliance sold a $25 billion stake in its digital and retail units, the shares were rallying about 29% this year. While Sensex has slipped 4%, the Reliance investors are cheering Ambani fundraising tactics. The jump triggered one of the biggest wealth surges as Ambani amassed $19.1 billion in 2020 and became the world’s sixth-richest entity.
