Top 25 ind houses lost Rs 1 lakh cr in 09

Written by Pradip Kumar Dey | Mumbai | Updated: Mar 6 2009, 06:19am hrs
The top 25 industrial houses of the country have lost 16.1% of their wealth, or Rs 1.22 lakh crore, since the beginning of the calendar year, a study conducted by FE has found.

The stock market plunge has taken the combined wealth of these industrial houses to Rs 6.34 lakh crore, as on March 5, 2009, from Rs 7.56 lakh crore on January 1, 2009.

During this period, the Sensex declined by 1,705.54 points, or 17.2%; it was 9,903.46 on January 1, 2009, and fell to 8,197.92 on March 5, 2009.

An analyst from a rating agency said that even measures undertaken the RBI and a drop in inflation failed to lift investor confidence. "FIIs kept selling their stakes on a gloomy outlook for the Indian economy," he noted.

The market capitalisation of industrial houses belonging to Anil Ambani, Essar, Subhash Chandra, UB, Jaiprakash Gaur and Oberoi dipped significantly during the above period.

The market cap of Anil Ambani group registered the sttpest fall; it decreased 37.05%, from Rs 1.18 lakh crore on January 1, 2009 to Rs 74,751 crore on March 5, 2009.

In case of the Essar group, the total market cap of three units decreased 33.3% to Rs 8,564 crore on March 5, 2009; it was Rs 12,840 crore on January 1, 2009.

The market cap of the Subhash Chandra group, on the other hand, decreased 31.9% to Rs 5,101 crore; it was Rs 7,488 crore on January 1, 2009.

The dip in market capitalisation of eight UB group companies was along similar lines. It decreased 31.1% to Rs 8,841 crore on March 5, 2009 from Rs 12,830 crore on January 1, 2009. Among Anil Ambani group companies, the highest decrease in market capitalisation was seen in the case of Reliance Capital (45.4%) and Reliance Communications (44.7%).

Among other groups that were part of the study, over 15% decrease in market cap was seen in the case of houses belonging to Tata, Jaiprakash Gaur, Sun, Godrej, Piramal, Brij Mohan Thapar, Oberoi and MM Murugappan.

Among the top 25 industrial houses, the lowest decline in market cap was registered in the case of Om Prakash Jindal (3.8%).

The Mukesh Ambani-led Reliance group, comprising of 3 units and the wealthiest of the lot, showed a 10.9% decrease in wealth during the study period.

Only one industrial house in the study, Hero-M B Lall, reported an increase of 14.8% in its wealth during the period. Closing share prices used in the study were computed from the official price lists published by The Stock Exchange, Mumbai for the period January 1, 2009 to March 5, 2009.