Mukesh Ambani lost nearly half of his wealth due to coronavirus fears

• Ambani’s net worth fell by 41% to $34.4 billion on 19 March after Coronavirus fear crashed global and Indian stock markets.
  
• RIL’s share price plummeted as much as 39% between January 1 and March 23 during the massive sell off triggered by Coronavirus.
  
• Ambani and his family recently raised stakes in Reliance Industries.
  

The deadly Coronavirus is affecting the health and wealth of Indians. India’s richest businessman Mukesh Ambani is not immune to the pandemic’s effect on the stock markets. According to Bloomberg, Ambani was worth $58.6 billion when the year started. However, his net worth reduced by 41% to $34.4 billion on 19 March after Coronavirus fear crashed the global and Indian stock markets. Ambani has lost more than what he earned last year.

His net worth however did see a marginal increase after the Ambani family — Mukesh and Nita Ambani and their three children — raised stake in Reliance Industries. As of March 22, he was worth $37.7 billion. Ambani is among the top 5 billionaires in the world who lost the most in the last three months.

RIL’s share price plummeted as much as 39% between January 1 and March 23 during the massive sell off triggered by Coronavirus. Since mid-2018, RIL stock was trading above ₹1000. Moreso, it added a whopping ₹2.49 trillion — highest value addition in market value — 2019 alone. But it couldn’t hold on to the success in 2020.

On March 19, RIL shares were trading at ₹917 apiece.

Most of his RIL’s share price erosion happened over the last one month, when crude prices saw a steep fall fearing global recession. While his telecom and retail businesses are going strong, his oil refining business is directly linked to the price of crude oil.

RIL’s fortunes are also tethered to the outcome of the oil war between Saudi Arabia and Russia. Ambani was also supposed to close the $15 billion Saudi Aramco deal by March 31 this year. But with a lockdown in place, investors are wary, though media reports suggest that the deal might be closed.

See also:
The last time you could buy Reliance Industries share below ₹1000 a piece was in mid-2018
Mukesh Ambani has lost at least $17 billion in 26 days as Coronavirus fears dent RIL shares
Here’s how Mukesh Ambani lost $5.8 billion in a day