Sunil Mittal overtakes Lakshmi Mittal in net worth as Airtel stock hits new high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A 70% rally in shares of Bharti Airtel over the last year has taken billionaire Sunil Mittal’s net worth to $19.7 billion. In the process, the founder and chairman of Bharti Enterprises has not only entered into the top ten wealthiest people in the country but also surpassed the fortune of steel tycoon Lakshmi Mittal.

While the fortune of Sunil Mittal & family surged $3.8 billion since January 2024, Lakshmi Mittal witnessed an erosion of nearly $1 billion in his wealth during the same period. According to the Bloomberg Billionaires Index, Sunil Mittal, who possessed 13th rank at the beginning of the year, also surpassed developer KP Singh’s net worth and Kumar Birla of Aditya Birla Group.

Source: Bloomberg

The majority of Mittal’s fortune is derived from his 28% stake in Bharti Airtel. His stake is held through closely-held Bharti Enterprises and other holding companies. Apart from Bharti Airtel, the promoter also held 70% of the newly listed mobile services provider Bharti Hexacom. In contrast, the stock of ArcelorMittal has come off 11.4% in the last year after analysts foresee muted demand rebound in many of its core markets.

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Lakshmi Mittal is chairman and largest shareholder of ArcelorMittal, the world’s biggest steelmaker outside of China. The Luxembourg-based company has mining, energy and refining operations in 59 countries. The company reported a net revenue of $68.3 billion in 2023, whereas its profit for the year stood at $ 919 million.

With a market capitalisation of $91.84 billion (including partly paid-up shares), Bharti Airtel is ranked fourth after Reliance Industries, TCS and HDFC Bank. Further, its newly listed subsidiary –Bharti Hexacom—had a valuation of close to $6 billion as of Friday’s close.

Analysts at Jefferies expect Bharti Hexacom to deliver 16% and 21% annualised growth in revenue and earnings before interest taxes and depreciation (EBITDA) over FY24-27. The brokerage, which initiated coverage with a “Buy” rating on the stock observed, “ It offers a way to invest in those parts of Bharti Airtel’s business that are growing faster.”

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Shares of Bharti Airtel surged to a new high of ₹1296.50 on the NSE in Friday’s trade.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow