India Inc's top ten promoters lose over $68 bn

If you have been left poorer after the latest market crash, you are not alone to get that sinking feeling. Keeping company are some of India’s richest and most powerful businessmen.

In the last seven trading sessions, India’s top ten promoters, including Mukesh Ambani, Tatas, Anil Ambani, KP Singh (of DLF), Anil Agarwal (Sterlite Group) and Chandras’ (Unitech), have together lost over $68 billion in the market crash. In percentage terms, the decline in their net worth is close to 25%.

Biggest loser: Topping the list of losers is Anil Ambani, whose net worth is down by nearly $15 bn.
Lost in diversification: Loss in Tatas’ market cap shows that in a secular crash even diversification doesn’t work.
Hit hard: The market also punctured rising stars such as Anil Agarwal, OP Jindal family, Mittals of Bharti Airtel.
Topping the list of losers is Anil Ambani, whose net worth is down by about $15 billion, or nearly a third from its peak of $47 billion reached on January 11.

Next in line is Mukesh Ambani, whose wealth has decreased by $14.2 billion. The KP Singh family comes third, thanks to the decline in DLF’s stock price, with a loss of $12 billion.

In percentage terms, the biggest losers are, however, Chandras’ of Unitech. Their net worth declined by over $5 billion, or 32%, compared with January 11.

The market crash didn’t spare the Tatas either, despite that fact that their group companies were in the forefront of the rally that took place in the past three months. The market value of the promoter’s holding declined by 21%, or nearly $8 billion, in the recent crash.

Loss in Tatas’ market cap shows that, in a secular crash as we have seen, even diversification doesn’t work. Tatas have over two dozen listed companies with presence across sectors as diverse as IT, steel, automobiles, power, hotels and consumer goods among others. In contrast, other groups have limited sectoral diversification.

The market also punctured rising stars such as Anil Agarwal (loss of $4.5 billion), OP Jindal family ($3.2 billion), Mittals of Bharti Airtel ($2.5 billion), Tulsi Tanti of Suzlon (down $2 billion), Gaurs of Jaypee Group ($1.8 billion). As you would have guessed by now, the faster you rise, harder you fall.

To arrive at a promoter’s net worth, we have netted out the cross-holding of listed group companies in each other. For instance, Mukesh Ambani’s net worth only includes the market value of his investment companies stake in RIL. It excludes the promoter’s stake in RPL, as it has been promoted by RIL.