Indian tycoon Anil Ambani, chairman of Anil Dhirubhai Ambani Group (ADAG), has topped Forbes’ list of the biggest billionaire losers of 2008. He is estimated to have lost US$30 billion, or more than 71 per cent, of his net worth, settling at just US$12 billion now.
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Indian Tycoon Tops Forbes List of Biggest Losers
By NEETA LAL
3 January 2009
Indian tycoon Anil Ambani, chairman of Anil Dhirubhai Ambani Group (ADAG), has topped Forbes’ list of the biggest billionaire losers of 2008. He is estimated to have lost US$30 billion, or more than 71 per cent, of his net worth, settling at just US$12 billion now.
Ironically, last March, Mr. Ambani was feted for having added the most wealth in Forbes magazine’s annual billionaire rankings and named the sixth richest person in the world.
In the Forbes report, Billionaire blowups of 2008, two other Indians join him in the top 10 losers list - wind power major Suzlon’s chief, Tulsi Tanti, and online gambling firm PartyGaming’s founder, Anurag Dikshit.
Mr. Tanti has even fallen out of the billionaire circle, as his wealth now stands at just US$500 million, from some US$3 billion last March. Mr. Dikshit is just holding on, at about US$1 billion, down from US$1.6 billion previously.
Forbes said: ‘The 10 richest from our 2008 rankings dropped some US$150 billion of wealth, dragged down by steel tycoon Lakshmi Mittal, estranged brothers Mukesh and Anil Ambani and property baron KP Singh, who together dropped US$100 billion. America’s 25 biggest billionaire losers of 2008 lost a combined US$167 billion.
‘But among all the biggest loser of all was Anil Ambani, who was touted on the cover of our 2008 billionaires issue for having added US$24 billion to his fortune in one year. Stocks of his telecom company dropped after his estranged brother helped scuttle a deal with African telecom MTN.’
It was also mentioned that all the listed 10 had distinguished themselves for some of the biggest flops as they lost more than money. Some lost board seats while a couple even had an infamous brush with the law. Thus, all of them suffered wealth erosion due to credibility loss.
For Mr. Ambani, 2007 was his year. With the Indian stock market experiencing a major bull run - his group of companies being significant contributors - the tycoon emerged as India’s second richest businessman. In early 2008, his Reliance Power closed the biggest IPO in Indian history and was listed on the stock exchanges with a market capitalisation of nearly Rs 100,000 crore (S$3 billion). But the success was transient. As soon as RelPower was listed, the market went into a tailspin.
ADAG companies emerged as one of the biggest losers in the stock market bloodbath. RelPower was down over two-thirds from its peak, forcing IPO investors into losses. The group’s flagship Reliance Comm is off nearly 80 per cent from its peak - much worse than the 30 per cent fall in Bharti Airtel’s market cap during the period. Overall, the group has lost nearly 75 per cent of its market value since December 2007, against a roughly 50 per cent fall in the broader market.
All in all, 2008 has not been a good year for India’s richest business houses. The market capitalisation of the top 20 Indian business houses slid by a whopping 65 per cent (Rs 16.73 lakh crore) over the previous year.
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