New Delhi: Amid weakening stock markets, billionaire investor Rakesh Jhunjhunwala seems to have been on a shopping spree and has hiked stakes in four companies in less than two months, helping their counters to surge by up to 39 percent.
During April-May, Jhunjhunwala has increased stake in visual entertainment services firm Prime Focus; computer education company Aptech; Viceroy Hotels and IT services provider Geometric through open market transactions, according to data available with the stock exchanges.
Ace investor Rakesh Jhunjhunwala
These scrips have surged from 3-39 per cent on the bourses despite subdued market. Viceroy Hotels was the biggest gainer as its scrip swelled 39 percent on the BSE, followed by Geometric (16 percent), Aptech (12 percent) and Prime Focus (3 percent).
Meanwhile, the BSE 30-scrip index, Sensex, fell by over 7 percent during the same period.
Analysts said the four counters spurted mainly on account of Jhunjhunwala’s hiking his stakes in these companies, adding that these stocks were good to accumulate for long term
investment.
CNI Research CMD Kishor Ostwal said, “The stocks have surged due to immediate reaction of the stake hike but eventually they will come down.” In May, Jhunjhunwala has increased stake in Prime Focus by acquiring 25.5 lakh shares or 1.71 percent stake worth Rs 11 crore. This takes the total stake of Jhunjhunwala and his wife Rekha in the company to 7.64 per cent.
Besides, the ace investor has bought additional 10 lakh shares, or 1.6 percent stake, in Geometric for Rs 6.25 crore this month. Prior to the acquisition, he and his wife held
8.46 per cent stake in Geometric.
Jhunjhunwala also acquired 2.24 per cent stake in Aptech for nearly Rs 8 crore. Together, Jhunjhunwalas already held over 32 percent stake in the company. Last month, the ace investor had increased stake in Viceroy Hotels to 13.45 per cent with the acquisition of an
additional 3.45 percent for Rs 2.19 crore.
Overall, Jhunjhunwala holds stake in more than two dozen listed companies including Lupin, Orchid Chemicals & Pharmaceuticals, Reliance Broadcast Network, Titan Industries and Hindustan Oil Exploration Company.
PTI
