Reliance separation benefitted investors: Experts

Mumbai, June 19: Market analysts today pointed out that notwithstanding their separation, the market value of the companies owned by Ambani brothers, Mukesh and Anil, have witnessed a whopping four-fold jump at a staggering Rs 4,30,000 crore in the last two years, effectively ensuring that loyal investors can laugh their way to the bank.

The fact that the Ambani clan and stock markets have a close affinity is well-known, but what is even more interesting is the fact that gains for investors during the two years of their separation of the business empire founded by late Dhirubhai Ambani have more than doubled during the last two years they were together, they observed.

The siblings had parted ways on June 18, 2005. When the duo reached a settlement to part ways two years ago, the combined investors' wealth in the group, measured in terms of market value of all listed companies, stood at about Rs 1,00,000 crore.

Two years later, the combined value of all the listed entities of the two groups soared over four-fold to about Rs 4,30,000 crore, representing a gain of about Rs 3,30,000 crore in the investors' wealth, analysts closely tracking Reliance stocks noted.

In comparison, two years before the separation, the group's combined market value stood at Rs 50,000 crore, nearly half of the level, at which the two Ambanis decided to go their separate ways.

Another important facet of the case is that the collective gain of Rs 3,30,000 crore reaped by investors in the two separate business groups in the past two years includes a significant portion of about Rs 1,50,000 crore coming from the new listed entities, they explained.

Anil Ambani group's Reliance Communications, whose market cap today stands at about Rs 1,00,000 crore, was not a listed company two years ago, while Mukesh Ambani group's Reliance Petroleum, with a current market cap of about Rs 42,000 crore, also made its debut on the bourses after the separation, analysts added.

UNI