Anil Ambani group companies rose in Mumbai after the billionaire’s decision to remove his name from corporate branding stoked speculation he may forge closer ties with brother Mukesh, investors such as Jayesh Shroff said.
The Anil Dhirubhai Ambani Group companies will be rebranded as “Reliance” companies, Sanjay Behl, group head of branding and marketing, told Bloomberg UTV yesterday. Anil had previously branded his companies as “ADAG,” while his brother Mukesh Ambani called his group “Reliance” after the siblings broke up India’s second-largest industrial group in 2005.
“It’s possible the market is reading the new branding as a reconciliation between the brothers,” said Shroff, who manages $1.4 billion in equities at SBI Funds Management Pvt. in Mumbai.
Reliance Communications Ltd., Anil’s flagship company and India’s second-largest mobile phone provider, gained as much as 4.7 percent, the biggest intraday gain in a week, to 144.90 rupees and changed hands up 4.1 percent at 11:35 a.m.
Reliance Infrastructure Ltd. gained as much as 2.4 percent, Reliance Capital Ltd. and Reliance Power Ltd. rose as much as 2.6 percent. Mukesh Ambani’s Reliance Industries Ltd. added 1.1 percent, while the benchmark Sensex Index advanced 0.7 percent.
Gaurav Wahi, a spokesman for Reliance Communications, didn’t answer a call made to his mobile phone. Manoj Warrier, a spokesman for Reliance Industries, denied the company was planning to buy Anil Ambani-owned companies. Tony Jesudasan, a spokesman for the Anil Dhirubhai Ambani Group, didn’t immediately respond to a text message and a call made to his mobile phone.
Anil, 51, gained control of telecommunications, power and financial services, and Mukesh, 53, kept the oil, gas, and refinery and chemicals businesses after the brothers broke up the group.
To contact the reporter on this story: Ketaki Gokhale in Mumbai at firstname.lastname@example.org.
To contact the editor responsible for this story: Anand Krishnamoorthy at email@example.com