Shares of Jaiprakash Associates jump as much as 15% hit a 52-week high of Rs 26.5 after the Indian investment maestro Rakesh Jhunjhunwala bought over 1% stake in the company in the April-June quarter as reported by The Economic Times and Dalal Street Investment Journal. Rakesh Jhunjhunwala has picked up 2,5 crore shares in Jaiprakash Associates which accounts for 1.03% of the shareholding in the company, however, it is not known whether Jhunjhunwala owned any stake prior to the quarter as individual shareholding details show up in exchanges only if the total stake held is more than 1%.
According to the media reports, Jhunjhunwala’s total holding is worth Rs 57.5 crore. Over the period of last one month, the shares of JP Associates have zoomed 61% to a new 52-week high of Rs 26.5 from Rs 16.35 a month ago. The benchmark indices Sensex and Nifty rose 2.46% and 3% to the today’s high in the same period. Since January 2017 the stock has jumped 219%.
In February 2017, ICICI Bank said the debt to the JP Associates could soon be concluded as its planned sale of cement units was moving well. ICICI Bank’s MD and CEO Chanda Kochhar told CNBC TV18 in an interview, “A large case that one could talk about is the Jaiprakash Associates’ cement assets sale to Ultratech. That is moving well in terms of regulatory approvals”. Kochhar added ICICI Bank would soon see two-three large deals concluding soon, which would ease some pressure on its stressed assets.
Earlier last year, Aditya Birla group company Ultratech Cement agreed to buy JP Associates’ 17.2 million tonne cement units for Rs 16,189 crore and a 4-million tonne grinding unit for additional Rs 470 crore, after a prolonged period of uncertainty.