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HomeSTOCKSSupreme Court Has Directed His Company To Repay The Amount; Huge Crash...

Supreme Court Has Directed His Company To Repay The Amount; Huge Crash In This Share

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Mukesh Ambani’s younger brother Anil Ambani was once included in the list of the world’s biggest billionaires, but then he fell from the throne to the floor. For the last few days, he has once again been in the headlines. 

First, he is being discussed because of the rise in the shares of his companies Reliance Power and Reliance Infra, and now because of the shock caused by the Supreme Court’s decision in favor of Delhi Metro. 

The Supreme Court has directed his firm to pay what was awarded in the initial arbitral verdict handed out to Delhi Metro Rail Corporation to Delhi Airport Metro Express Private Limited.

The Big Shock In The DMRC Dispute!

First of all, let’s talk about the latest blow to Anil Ambani, in the dispute that has been going on between his company DAMEPL and DMRC since 2012, on Wednesday the Supreme Court ordered him to return the original amount of Orbital.

The cost that was present up to this point, has increased to about 8000 crore rupees. 

According to the report, Anil Ambani will have to pay around Rs 3,300 crore for this award received by his company from Delhi Metro Rail Corporation.

The special thing is that this blow has come at a time when their companies are facing cash flow problems and are going through debt restructuring.

The Lower Circuit In Anil Ambani’s Shares

The impact of this setback in the DMRC dispute was immediately visible on the shares of Anil Ambani’s companies.

As soon as this news came on the last trading day, shares of Reliance Infra, a company with a market capital of Rs 9015 crore, fell 20 percent to Rs 227.60. Not only Reliance Infra but also his company Reliance Power Share is facing a lower circuit.

However, the company of Anil Ambani Reliance Infrastructure Ltd said in the filing to the stock exchange that there was no obligation placed on it as a result of an order of the Supreme Court order.

Reliance Infrastructure wishes to clarify that the order of 10 April 2024 that was passed in the Court does not create any obligation to Reliance Infrastructure. 

Company has received no funds from DMRC/DAMEPL as a result of the arbitral decision. Even today Anil Ambani is burdened with debt and his companies are on the verge of being sold. 

But there was a time when he used to compete with the biggest billionaires in the world. In the year 2008, Anil Ambani was in sixth place on the list of top-10 billionaires and at that time his total wealth was 42 billion dollars.

But due to some mistakes and failures in business, his fortunes took such a turn that he even had to declare himself bankrupt.

Late Dhirubhai Ambani’s younger son Ambani, 64, who did his MBA from the Wharton School of the University of Pennsylvania, started handling the financial affairs of Reliance under his father after Dhirubhai suffered a stroke in 1986.

However, when Dhirubhai died in 2002, the Ambani family suffered the brunt of partition soon after. 

The companies were divided between Dhirubhai’s two sons Mukesh Ambani and Anil Ambani. The elder son of Mukesh Ambani had to be content with his old business, which included petrochemical, textile refinery, and oil-gas business.

So younger son Anil Ambani has new-age businesses like telecom, finance, and energy in his account.

These Mistakes Cost Anil Ambani Dearly

Even after getting into the new-age business, Anil Ambani could not do anything special and was forced to go bankrupt. Mukesh Ambani is the most wealthy person in Asia currently and his net worth is around $104 billion.

Talking about the big mistakes of Anil Ambani, there are many reasons why his financial health kept deteriorating. 

When he got a new-age business, he hurried to take the business forward without proper planning, for which he had to pay a heavy price. Investing money in new projects one after another without preparation also proved bad for him.

At that time, the new projects in which he was betting to become the king of the energy and telecom sectors, the cost was higher than expected and the returns were negligible. This was the main reason behind his demise. 

He did not pay attention to the business of one sector and kept jumping from one business to another. Meanwhile, after the global recession of 2008, they did not get a chance to emerge again.

Examples Of Anil Ambani’s Destruction

Before the global recession, the market value of Anil Ambani’s group (ADAG) companies was around Rs 4 lakh crore. But, he could not remain in this position. 

It is very important to mention R Power and R Com in the destruction of the companies they inherited. If we consider this as an example, Anil Ambani had invested in many projects to reach the top in the energy sector, one of which was the Sasan Project.

Disclaimer: The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. We are here to provide timely updates about the stock market and financial products to help you make better investment choices.

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