Rakesh Jhunjhunwala picks stake in Tata Communications

By: Ajaya Sharma

It may just be a Rs 25-crore block deal, but its set mutual funds and the markets aflutter. Tata Communications, which has corrected 32 per cent in the past two months, is seeing buying from large players in the market, not to mention funds.

According to sources, big bull Rakesh Jhunjhunwala & Associates bought 16 lakh shares in Tata Communications from Tata Sons via a block deal on June 28, 2013.

The promoters had to sell 0.57 per cent stake in the company to comply with SEBI shareholding norms. Tata Communications’ latest disclosures show reduced promoter stake on the BSE.

Dhanki Securities has been broker to the block deal.

E-mail queries written to Rakesh Jhunjhunwala and Tata Group went unanswered.

Institutions such as Kotak, Prudential ICIC and Edelweiss have been showing interest in the company and have increased their stake in the month of June.

Tata Communication is sitting on 740 acre land bank in Delhi, Maharashtra & Tamil Nadu.

The government holds about 27 per cent stake while the Tatas Group hold around 51 per cent stake in the company.

The stock ended at Rs 164.70, down 0.09 per cent, on the BSE. It touched a high of Rs 169.30 and a low of Rs 164 in trade today.