But Mukesh group may top following Reliance Petroleum's IPO

Rajesh Abraham

On the kitty


The ADAG

companies now have a market capitalisation of Rs 97,499.43 crore as against Rs 1,17,504.38 crore by companies falling under the RIL umbrella.

Mumbai, March 27

The new Reliance group that had been largely carved out from Reliance Industries Ltd (RIL) recently, has more than halved the gap between the two groups in terms of market cap in about a month's time.

From a difference of over Rs 45,000 crore that existed immediately after the demerger of the four entities and their subsequent listing on the bourses, the Anil Dhirubhai Ambani Group (ADAG) companies have narrowed the gap to Rs 20,000 crore as on Monday, according to the data available from the stock exchanges.

The ADAG companies now have a market capitalisation of Rs 97,499.43 crore as against Rs 1,17,504.38 crore by companies falling under the RIL umbrella. In other words, these companies have gained by as much as Rs 20,499 crore ever since the four demerged entities - Reliance Communication Ventures Ltd (RCoVL), Reliance Energy Ventures Ltd (REVL), Reliance Capital Ventures Ltd (RCVL) and Reliance Natural Resources Ltd (RNRL) - were listed on the stock markets.

RIL's market cap

RIL now has a market capitalisation of Rs 1,10,664.80 crore, followed by Indian Petrochemicals Ltd (Rs 6,268.79 crore) and Reliance Industrial Infrastructure (Rs 570.78 crore).

Against this, the ADAG firms are led by RCoVL, which tops the market capitalisation among the group companies at Rs 60,327 crore, followed by Reliance Energy (Rs 12,372.43 crore), Reliance Capital (Rs 10,257.38 crore), REVL (Rs 5,203.3 crore), RCVL (Rs 2,982.90 crore), RNRL (Rs 4,955.20 crore) and Adlabs (Rs 1,395.72 crore).

With Reliance Petroleum's mega IPO slated to hit the market next month, the Mukesh Ambani group's market capitalisation would go up further, stretching the lead over the ADAG companies, said analysts. "The issue size is anywhere between Rs 6,000 and Rs 6,500 crore," said an analyst with a local broking firm.

He said the ADAG companies' market cap had crossed the Rs 1-lakh crore early last week, but the selling pressure witnessed in the last two weeks meant that the shares have fallen considerably.

For instance, the RCoVL shares hit a high of Rs 339 on March 16, before dropping to Rs 295 levels on Monday. Similarly, the Reliance Capital shares have fallen to Rs 503-levels from Rs 545-levels on March 21.

Related Stories:
RIL to demerge power, finance, telecom Investors to get shares of separated units
Reliance hands over control of 4 demerged cos to Anil Ambani
Reliance Industries: The mechanics of the demerger
RCoVL FCCB conversion at Rs 480.68 per share
Anil Ambani recasts telecom
Reliance Comm Ventures listed at Rs 290 on BSE

(This article was published in the Business Line print edition dated March 28, 2006)
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