Mukesh Ambani's wealth crossed Rs 5 lakh crore ($70 billion) on Thursday after the country's most valuable firm Reliance Industries became the first company to hit Rs 10 lakh crore market capitalisation (m-cap). The conglomerate's m-cap touched Rs 10,01,270 crore in Thursday's early trade after its shares rose to a record high of Rs 1,581 apiece.
With 50.05% of the shareholding in RIL, the Ambanis have become the first family in Indian history to have wealth above Rs 5 lakh crore.
The shareholding wealth of Ambani and his family has increased by around 45% over the last 15 weeks, in-line with the climb in RIL's share price that kept surging thanks to the strong performance of its oil and telecom businesses.
As of September quarter, promoter shareholding in RIL had increased by 2.76% to 50.05%.
The share price of his flagship firm has increased over 220% in the last 5 years from Rs 493.58 to its all-time high of Rs 1,581 apiece. Compared to this, Tata Consultancy Services (TCS), the second most valued company, witnessed a 57% rise from Rs 1,324.58 to Rs 2,084.5.
HDFC Bank, the third most valued firm in the Indian stock market with m-cap of Rs 6.97 lakh crore, has risen 164% in the last 5 years from Rs 789.15 to Rs 2,085.7. Hindustan Unilever (HUL), next in line with Rs 4.54 lakh crore market valuation, has risen 168% in 5 years from Rs 473.83 to Rs 1,270.
In the meanwhile, benchmark index Sensex has surged 44% during the same period.
According to Mustafa Nadeem, CEO, Epic Research, the rise in the conglomerate's share value is due to stake sale to Aramco and Reliance Jio's success. "This company has seen a stellar growth with a market share of 30+% and is on the rise," he added.
"Second is the stake sale to Aramco has further made its valuation going forward attractive since their aim to achieve the debt-free balance sheet is likely to be seen in FY20-21," quoted Nadeem.
Sensex and Nifty also hit a fresh lifetime high today. While Sensex scored another all-time high of 41,163, Nifty50 touched lifetime high of 12,144.40.