Reliance's valuation is a mix of the legacy hydrocarbons business and the higher terminal values that investors have been ascribing to retail and telecom. With Ambani's recent ESG foray plans, the company is likely to attract investments from ESG funds
After a decade of occupying
the top spot on the Forbes India Rich List, Mukesh Ambani spent 2021 further cementing his position
After a decade of occupying the top spot on the Forbes India Rich List, Mukesh Ambani spent 2021 further cementing his position. As his consumer businesses in retail and telecom matured, so did the market expectation of their potential. As a result, the chairman of Reliance Industries saw his net worth climb to $92.7 billion (₹6,95,200 crore).
In June, the inveterate entrepreneur also unveiled his next growth engine in the green energy space. On the anvil are plans to build four gigafactories in Jamnagar. In addition, Reliance also plans to construct a solar photovoltaic module factory that would convert raw silica into polysilicon and then to wafers. Ambani plans to invest a total of ₹75,000 crore in the green energy space, although details of what the amount will be spent on remain sketchy.
Reliance’s valuation is a mix of the legacy hydrocarbons business and the higher terminal values that investors have been ascribing to retail and telecom. Over the last year, there has been a steady stream of news in both these businesses, which has resulted in investors ascribing FAANG-like valuations to the business.
As it gets more conscious on the ESG scale, expect Reliance to attract more investments from ESG funds.