Indian billionaire business magnate, and the chairman, managing director, and largest shareholder of Reliance Industries Ltd., Mukesh Dhirubhai Ambani has become the world’s 5th richest person after overtaking legendary investor tycoon Warren Buffett in terms of net worth, also surpassing other well recorgnized billionares like Larry Page & Steve Ballmer to name a few. Currently, he's the richest man in Asia with a net worth of $77.3 Billion.
A week ago, Mukesh Ambani was about to become the fifth richest man, but after an annual shareholder meeting, Reliance’s share dropped by more than 6%, and he lost about $2 billion a day. But Due to the rapid rise in the share price of the Reliance industry, Mukesh Ambani's net asset value has soared. After making a series of investments in the Reliance Jio platform in three months since April, RIL's stock price has almost doubled since March 2020.
After Saudi Arabian Petroleum seeks to cut the price sought by the $75 billion billionaire Mukesh Ambani's company by at least 20%, Reliance Industries plans to reduce one-fifth of its petrochemical business The safety plan was stopped by Aramco. In order to facilitate the transaction with Aramco, Reliance decided to split the O2C business into a separate subsidiary earlier this year. Ambani said the process will continue and is expected to be completed in early 2021.
According to some sources, Saudi Aramco rejected Reliance’s proposal to acquire 20% of the O2C business at a price of US$15 billion from the beginning, including the company’s dual refinery, petrochemical plant and 51% fuel in Jamnagar, Gujarat. Retail Enterprises.They said that due to the sharp drop in crude oil prices due to the pandemic, the company seeks a full reassessment to price the business no more than US$5.7-6 billion (shareholding ratio of US$1.1-1.2 billion).
Aramco believes that the business requires significant investment to convert oil into valuable chemicals, unlike the Jamnagar refinery that produces gasoline, diesel and ATF in large quantities.
Aramco also has reservations about Reliance's debt in O2C business. The source said that Reliance refused to reassess or adjust the debt scale. While both parties maintain their positions, Ambani stated at Reliance’s annual shareholders meeting that due to “the unexpected situation in the energy market and the Covid-19 situation, the transaction with Aramco has been postponed.
He did not disclose whether the transaction proceeded as scheduled, nor did he give a new timetable for the completion of the transaction. With shares, Aramco will not only own shares in one of the world’s best refineries and largest integrated petrochemical plants, but also enter one of the fastest-growing markets-a ready-made market with 500,000 barrels of Arabian crude oil per day. Even higher. Possible further roles in the future.
The company said that after accounting for spectrum fees, capital expenditure creditors and other statutory dues, its net debt figure is higher than Reliance's estimate of Rs 1,160 crore. However, "the balance sheet has essentially reduced the leverage of the share sale, so even if Aramco's transaction timetable is not yet known, the balance sheet will not be affected."
On July 22, the share price of Reliance Industries (RIL), led by Ambani, broke through 2,000 points for the first time and soared to a new high.
Mukesh Ambani, Chairman of Reliance Industries Ltd (RIL), announced the development of 5G technology solutions made in India. This idea will become the company's strategy to create an interconnected digital ecosystem covering the telecommunications, e-commerce and retail industries. cornerstone. And solutions for enterprises in India and other regions.
"After Jio's 5G solution is verified in India, Jio Platforms will be able to provide exporters of 5G solutions to other telecom operators worldwide as a complete managed service,"
“We believe we can design basic 4G or even 5G smartphones at a fraction of the current cost." Ambani said at its annual general meeting on Wednesday.
However, to power such a value-designed smartphone, we also need a smartphone operating system designed with the same value. …Keep in mind India. Google and Jio are working together to develop an Android-based smartphone operating system," Ambani said, adding that Google has agreed to invest 33,737 crore Indian rupees to purchase a 7.7% stake in Jio Platforms.
According to analysts, a key part of Jio's strategy is leveraging technologies developed by emerging companies. Trust has been invested. Ambani announced that the retail business will further release value and has since become the main source of revenue for the group. Ambani said it will announce more strategic partnerships in the retail business.
Regarding the oil and gas business, Ambani said that global companies have contacted him to seek strategic partnerships in its chemical business, including the use of raw materials. However, the Covid-19 pandemic cast a shadow over RIL's petrochemical (O2C) business sold to Saudi Aramco for US$15 billion.