Ace investor Rakesh Jhunjhunwala has increased stake in the shares of debt laden Jaiprakash Associates, taking his holding to 2.06% in the latest quarter.
Ace investor Rakesh Jhunjhunwala has increased stake in the shares of debt laden Jaiprakash Associates, taking his holding to 2.06% in the latest quarter. The shares of JP Associates closed at Rs 14.95 on BSE today. Notably, Rakesh Jhunjhunwala has increased his stake in the company to 2.06% or 5 crore shares, data sourced from BSE showed. At today’s closing price of Rs 14.95, Rakesh Jhunjhunwala’s stake amounts to Rs 74.75 crore. This amounts to a massive rise in his stake as he held just 1.23% as at the end of March-17.
In March this year, Rakesh Jhunjhunwala’s picked up a staggering 3 crore shares in the company. According to bulk data available on NSE, Rakesh Jhunjhunwala’s firm Rare Enterprises bought 3 crore shares of Jaiprakash Associates at Rs 18.37 amounting to Rs 55 crore on March 15th. The shares soared by nearly 10% intra-day on the news of Rakesh Jhunjhunwala picking up shares in the company.
JP Associates is a reasonably diversified conglomerate with interests in engineering & construction, power, hospitality, roads & highways, IT, sports, etc and was facing troubled times after its real estate suffered on account of burst of the housing bubble in 2008 and was further weakened due to considerable pressure on its cement business as well. The pause in the sale of its housing properties had led to the company getting stuck in a vicious cycle of revenue loss, lack of funds, projects stuck midway, and failed debt repayments leading to further shortage of financing.
Notably, in the latest quarter, Rakesh Jhunjhunwala did not make any change to his holdings in Orient Cement, Aptech, Edelweiss Financial Services, Man Infra Construction, MCX, Crisil, Firstsource Solutions, Geojit Financial Services, Ion Exchange, Rallis India and VIP Industries.