Shares of the sprawling company Reliance Industries, which counts energy as its largest revenue generator, rose over 3% on Monday, as rising oil prices increased the value of the energy sector in India which is one of the top oil producers in the world. The increase was particularly good for Reliance Chairman Mukesh Ambani which added around $2.8 billion in his wealth and helping him surpass the billionaire of infrastructure Gautam Adani to claim the titlel of the title of the richest individual in India and Asia.
As of Monday night, Ambani is the world’s 10th richest individual, with a value of around $89.7 billion according to according to Forbes estimates and Adani is worth around $87.8 billion. He is also ranked as the 11th richest person in the world.
In addition to the positive news to the good news for Reliance, Reuters on Sunday announced that that the company would buy at around 200 stores from the struggling chain of supermarkets Future Retail to expand its presence as the country’s largest retailer. This major victory follows two years of dispute against Future shareholder Amazon over Reliance’s proposed $3.4 billion acquisition of large portions of Future’s mostly unprofitable business. In the last quarter of 2020, the giant of e-commerce has claimed that the deal is in violation of the terms of its contract that are tied to its investments, even though Future relies on the cash to pay off a loan that has been deemed in default.
“The ongoing litigation initiated by Amazon in October 2020… has created serious impediments” and has had an “severe adverse impact” on the company, CP Toshniwal, the chief financial officer of Future, told the Indian stock exchange in a letter sent on Saturday, stating that the company was “hopeful” the $3.4 billion agreement with Reliance will be completed before the deal expires in September. As per Reuters, Reliance will rebrand Future Retail. Future stores that will remain around 1,500 locations under its flagship chain of supermarkets Big Bazaar. Future Retail’s shares rose Future Retail jumped 6% on Monday.
The company was founded by Ambani’s late father Dhirubhai Ambani in the year 1966 as an unassuming textile maker, Reliance has since grown to become India’s biggest company, with revenues in the range of $73.8 billion (539,238 crore Indian rupees) in the year 2000, thanks to its interests in telecom, petrochemicals, retail and oil. Ambani was the sole owner of the business of his family following his father’s passing away in 2002. Ambani and his family have a 49% stake in the company.
Despite the huge boost to Ambani’s fortunes, one billionaire was able to increase his wealth on Monday. Tesla Chief Executive Elon Musk is the world’s wealthiest person has added $14.4 billion in his wealth Monday, as shares of the electric vehicle company increased by 7.5 percent. After a dramatic 40% drop in Tesla shares in the past year, Bernstein analyst Toni Sacconaghi ignited the rally on Monday by telling investors that Tesla’s “unique growth profile” stood above the other high-valued tech stocks. Musk is currently valued at $236.8 billion, which is close to $60 billion more than the second-richest individual, Bernard Arnault.