Indian business giant suffers stroke

Dhirubhai Ambani (centre) with sons Anil and Mukesh

The founder and chairman of India's largest private sector company, Dhirubhai Ambani, has been sent to hospital after suffering a second stroke.

News of the stroke initially sent shares in his multibillion-dollar Reliance Group down by more than 5% before they recovered once his condition became known.

His contribution to India's equity culture has been phenomena. The vibrancy in stock markets that we see today is his legacy.

Parag Parikh
Member-broker of the National Stock Exchange

"He is stable and is under treatment of two of our senior doctors," said Vijay Krishna, chief executive officer of Breach Candy hospital.

The shares fell despite Mr Ambani having handed over the reins of his business empire to his sons, Mukesh and Anil, who regularly brief him on the company's operations.

"The day-to-day running is handled by the two sons, and they have been around for nearly a decade," said A.K. Sridhar of Unit Trust of India, one of Reliance Industries' biggest shareholders.

"We believe long-term business strategies should not be affected due to the event."

Mr Ambani, 69, was left partially paralysed after a stroke more than 12 years ago.

Rags to riches

Born in 1932, the son of a poor school teacher from western Gujarat, Mr Ambani is credited with shaping India's stock market culture.

"His contribution to India's equity culture has been phenomenal," said Parag Parikh, member-broker of the National Stock Exchange.

Anil Ambani runs Reliance with brother Mukesh

"The vibrancy in stock markets that we see today is his legacy."

Mr Ambani left home at 16 to work in Aden in Yemen as a small-time trader before returning to India to taken on the state-owned industrial giants.

The listing of Reliance Industries in 1977, one of the largest public stock offerings of its time, attracted thousands of small investors to a market dominated by state-run financial institutions.

The company's annual shareholders' meetings were so well attended they had to be held in a football stadium.

Mr Ambani was elevated to hero status for pay shareholders high dividends and bonuses.

Reliance industry

Reliance Industries, India's biggest petrochemicals producer, and Reliance Petroleum, the biggest private refiner, announced a merger in April to create India's largest industrial group.

While still listed separately the combined value of the merged company would be about $9bn.

The Reliance Group has interests in the oil, gas, energy, telecoms, textile, insurance and financial service sectors.

The merged firms would account for about 15% of the 30-issue Bombay index and the Ambani family interest would be reduced from 44% to about 34%.