Did Jhunjhunwala err when he bought a stake in SpiceJet?
The plunge in shares in the interim period would be much steeper after excluding the surge on the day of share purchase.
By PTI |
NEW DELHI: In a rare case of a Rakesh Jhunjhunwala-invested stock going on a free-fall, the ace investor’s investment in SpiceJet has depreciated by over 12 per cent within 12 days amid mounting troubles for the cash-strapped budget carrier.
RARE Enterprises of Jhunjhunwala, who has long commanded a reputation in the stock market of buying stakes in companies with strong growth potential, purchased 75 lakh shares of SpiceJet for Rs 13.4 crore through the open market route on November 28. Since then SpiceJet shares have plunged 12.5 per cent, despite a rise of 2.62 per cent in Tuesday’s trading session.
The stock on Tuesday closed at Rs 15.65, as against the Rs 17.88 a piece at which Jhunjhunwala purchased shares amounting to about 1.4 per cent stake.
On the day of Jhunjhunwala’s purchase, SpiceJet shares surged 18.4 per cent. The plunge in shares in the interim period would be much steeper after excluding the surge on the day of share purchase.
RARE Enterprises of Jhunjhunwala, who has long commanded a reputation in the stock market of buying stakes in companies with strong growth potential, purchased 75 lakh shares of SpiceJet for Rs 13.4 crore through the open market route on November 28. Since then SpiceJet shares have plunged 12.5 per cent, despite a rise of 2.62 per cent in Tuesday’s trading session.
The stock on Tuesday closed at Rs 15.65, as against the Rs 17.88 a piece at which Jhunjhunwala purchased shares amounting to about 1.4 per cent stake.
On the day of Jhunjhunwala’s purchase, SpiceJet shares surged 18.4 per cent. The plunge in shares in the interim period would be much steeper after excluding the surge on the day of share purchase.
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