RIL shares tank, Net worth of Ambani erodes by USD 5 bn

The stock tumbled 5.54 per cent to Rs 1,940.50 on the BSE. On the NSE, it declined 5.57 per cent to Rs 1,940.05.

 The company’s market valuation tumbled Rs 68,093.52 crore to Rs 13,21,302.15 crore on the BSE.

 Mukesh Ambani, Chairman, RIL and also Asia’s richest man, lost as much as $5 billion from his net worth as RIL shares tumbled to the lowest price in over three months following a drop in quarterly profit.

 RIL on Friday reported a 15 per cent drop in Q2 net profit after a slump in core oil and chemicals business

 dragged down continued good showing in consumer-facing verticals such as telecom. The earnings announcement came after market close on Friday.

 Net profit was attributable to owners at Rs 9,567 crore in July-September compared with Rs 11,262 crore a year back, Reliance said in a stock exchange filing.

 The oil-to-telecom- to-retail conglomerate saw consumer-facing units doing well amid the lockdown easing but the core business continued to face pressure. The firm’s net addition of 7.3 mn subscribers and per-user revenue rising to Rs 145 helped the telecom business soar. Digital services, which include Jio, saw pre-tax profit surge 53 pc to Rs 8,345 crore.

Reliance Capital Ltd (RCL), part of debt-ridden Anil Ambani-promoted Reliance Group, has invited bids for sale of its subsidiaries, including Reliance General Insurance and Reliance Nippon Life Insurance, to repay loans of about Rs 20,000 crore. Sources said, the process for inviting Expression of Interest for its key assets was launched on October 31, 2020, with a view to unlock value of its underlying businesses and targets to make RCL debt free.