Arab Today, arab today india\s ambanis lose their shine with investors
Last Updated : GMT 13:25:24
Arab Today, arab today
Arab Today, arab today

India\'s Ambanis lose their shine with investors

Arab Today, arab today

Arab Today, arab today India\'s Ambanis lose their shine with investors

Mumbai - AFP

India\'s billionaire Ambani brothers are struggling to rediscover their Midas touch after a year in which they have been battered by investigations and investor scepticism about their businesses. Mukesh and Anil Ambani took over their father Dhirubhai\'s conglomerate after his death in 2002 but an acrimonious five-year scrap over the assets forced their mother to intervene and carve up the empire into two. Elder brother Mukesh heads Reliance Industries, with assets in mostly the energy and petrochemicals sector while Anil created the Anil Dhirubhai Ambani group (ADAG), from its telecom, finance and utilities interests. Shares in Mukesh\'s firm hit a two-year low last week and are down 20 percent in 2011 so far, while Anil\'s flagship Reliance Communication (RCom) shares have more than halved in the last 12 months. \"Once \'Dhiru\' shares were in almost every investor\'s portfolio,\" said Hemen Kapadia, chief executive of investment advisory firm Chart Pundit, using the nickname brokers gave the Reliance Industries stock under the Ambanis\' father. \"But Reliance stocks have lost some of their gloss,\" he told AFP. Mukesh\'s Fortune Global 500 firm has been dragged down mostly by concerns about slowing gas output from its fields off India\'s east coast, raising valuation worries for other still-to-be-explored assets. Output from the KG-D6 field has tumbled nearly 17 percent to 50-51 million metric standard cubic metres a day (MMSCMD), from a peak of 60 MMSCMD last year. The group had been expected to get a major boost from a $7.2-billion deal with British energy giant BP to explore the Indian company\'s existing and uncharted deepwater oil and gas fields. But with gas output falling \"the potential valuations for Reliance\'s future oil reserves... is evaporating,\" said one oil analyst with a Mumbai-based firm, who declined to be named. Another headache comes as the energy giant finds itself at the centre of controversy after the national auditor claimed that India\'s oil ministry and regulator favoured Reliance as it developed the KG-D6 field. Reliance hit back in a letter to the oil ministry this week, saying its reputation was \"severely impacted\" by the allegations. Anil, meanwhile, saw ADAG removed from the leading Sensex index on the Bombay Stock Exchange last week, just as he was trying to revive its fortunes. The group has faced headwinds since April after federal police quizzed the tycoon and other executives as part of a probe into one of India\'s biggest graft scandals, involving the awarding of telecom licences in 2008. Three senior executives from Reliance Telecom are on remand in prison facing charges of cheating, forgery and criminal conspiracy in the high-profile case, which is thought to have cost the country billions of dollars. A cloud hangs over the group, particularly RCom, said Jagannadham Thunuguntla, head of research with SMC Global Securities in New Delhi. \"Perception is weak, due to regulatory and financial concerns,\" he said. Anil has for more than a year been trying to find a foreign investor to buy a 26-percent stake in RCom, which would help lower its ballooning debt of $7.18 billion. RCom, India\'s second-biggest mobile phone firm, with a 16.5 percent share, has recorded seven straight quarterly falls in profit, even though India is the world\'s fastest growing mobile phone market, with 827 million subscribers at April-end, a 35 percent jump year-on-year. Competition is intense and margins are falling. To add insult to injury, rival conglomerate Tata Group became India\'s biggest in terms of market capitalisation last week, beating the combined value of the brothers\' companies. The salt-to-steel Tata Group was worth 4.32 trillion rupees ($96 billion) while the combined worth of the two Ambani brothers groups was 3.46 trillion rupees. Reliance Industries told AFP it did not comment on share prices. ADAG was not available for comment.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india\s ambanis lose their shine with investors Arab Today, arab today india\s ambanis lose their shine with investors

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday