KGN promoters enter the billionaire club

Shares of KGN Industries on Friday fell for the second day in a row after a historic 550-times surge on Wednesday, but this could not displace the Ahmedabad-based Memon family, the company's promoters, from their newly found place in the billionaire league.

The Memons became the latest and probably the fastest to join this league following the company's stock rising from Rs 100 to a high of Rs 55,000 in less than three hours on May 21, when it was re-listed after a gap of nearly seven years.

The company had attained a market capitalisation of more than Rs 1,20,000 crore (Rs 1200 billion) at around noon on May 21, when the shares were trading at the day's highest level. At that level, the promoters' holding was worth about $15 billion -- pushing them among the country's 10 richest persons.

However, after suspension of trading in the stock at 1220 hours and the BSE later fixing the closing price for May 21 at nearly one-tenth level of the day's high, promoters' wealth also plunged in the same ratio to about $1.5 billion.

KGN is engaged in trading of agro commodities like castor oil and was previously an NBFC named as Royal Finance Ltd. 

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