The Narendra Modi wave that drove up India’s markets to new highs in 2014 may be ebbing somewhat as the year comes to a close, but the Gujarat-based Adani Group remains the highest wealth creator, report Yoosef KP and Devangi Gandhi in Mumbai. Despite being weighed down by debt, the Adani Group continued to pursue acquisitions, picking up a power plant from the Lanco Group. The market value of three of the group’s listed entities soared 66% to Rs 1.2 lakh crore. Adani Ports accounted for more than half of this addition of Rs 48,343 crore.
The Tata Group, India’s biggest conglomerate, which now boasts a total market value of more than Rs 8 lakh crore, also fared well. Shareholders of companies like Indian Hotels, Tata Chemicals, Voltas and Titan made good money. Other corporate groups that made shareholders wealthier were the business houses of the Munjals and Mahindras, with both posting more than a 30% increase in the market value of their listed ventures.
The increase in wealth of the Bajaj Group was predominantly led by its financial services arms, Bajaj Finserv and Bajaj Finance, which together added more than Rs 18,000 crore to the total market value of the group.
Thanks to regulatory uncertainty, Reliance Industries (RIL) under-performed the benchmark indices for another year — the stock has lost about 1% compared to a 29% gain in the Sensex. The muted gains of stocks of their IT businesses resulted in a moderation in the wealth creation by groups like the Shiv Nadar Group.
In a year that saw hundreds of stocks soar to new highs, the Anil Ambani-led ADAG stood out as a prominent wealth destroyer — the group’s power and communication businesses lost more than Rs 11,000 crore of market cap, more than offsetting the performance of the infra and financial services businesses. The OP Jindal and Jaypee groups also reported a more than 30% decline in their market wealth for a second consecutive year, due to the dismal performance of their flagship companies, Jindal Steel & Power and Jaiprakash Associates, respectively.