In the Global Billionaire’s list, the Indian Tycoon Mukesh Ambani has become a threat to Mark Zuckerberg. Ambani’s wealth needs 26.55 percent more to bump up to equal that of Zuckerberg.
Facebook has decided to invest $5.7 billion (Rs. 43574 Crore) in Jio platforms last April. When Facebook decided to invest in Jio, Mark Zuckerberg would not have imagined that Mukesh Ambani would become so big and be a threat to him. A Strong increase in the share of Reliance Industries (RIL) has promoted Mukesh Ambani to the fourth spot in the global billionaire’s list.
Ambani’s wealth stood at $80.60 billion on Friday (7th August 2020), in this year there was an increase of $22 billion so far. Whereas the total wealth of Mark Zuckerberg is $102 billion and there was an increase of $23.3 billion so far this year. Mukesh Ambani just got past Bernard Arnault, the French Billionaire who leads Louis Vuitton. Another big investor in the Jio platform that is Alphabet (Google) has pumped $4.5 billion into the venture for a stake of 7.73%. The Founders Larry Page and Sergey Brin are placed on eighth and ninth respectively on the global billionaire list. Page added an amount of $6.72 billion and Brin added an amount of $6.44 to their total wealth during this year.
The rise in Ambani’s wealth is due to a sharp increase of 147 percent in the Reliance Industries shares. As on Friday (7th August 2020), for every 1% rise in the shares of Reliance Industries, $920 million was added to the total wealth of Ambani. The other five reliance group firms – Den Networks, Hathway Cable and Datacom, Network 18 media Investment, and Reliance Industrial Infrastructure have risen between 40 percent and 800 percent much to A this year but these have not added much to Ambani’s wealth.
After the recent rise in stocks of Reliance Industries, some analysts have turned cautious but others continued to maintain a positive stance on it. It is said that the consumer business will be a key growth driver for the company to go forward. Different Companies like Gold man Sachs, Morgan Stanley, and J.M Financial have analyzed the performance and the price rise in stocks of Reliance industries and they expect a positive news flow on global partnerships or stake sale which is likely to keep valuations at an elevated level. The Industry is entering a strong free cash flow phase and the risk-reward remains at 45%.