Ace investor Rakesh Jhunjhunwala has made a gain of 61 percent in six days through an investment made in Zee Entertainment Enterprises Ltd (ZEEL) by his stock trading firm RARE Enterprises.
The ‘Big Bull’s firm had picked up half-a-percent stake in ZEEL on September 14, as the latter’s stock rose amid news of the boardroom battle.
In plain numbers, Jhunjhunwala’s company bought 50 lakh equity shares in the company at a price of Rs 220.44 per share on the National Stock Exchange (NSE). The stake was valued at Rs 110.22 crore.
Since then, ZEEL shares have rocketed by nearly 40 percent to touch a peak of Rs 355.35 on September 22. Based on current price, the investment made by RARE Enterprises is now valued at Rs 177.67 crore, marking a jump of Rs 67.45 crore or 61 percent above the acquisition price.
Notably, ZEEL stock has rallied since the market regulator was informed by the company that two of its largest shareholders – Invesco Developing Markets Fund and OFI Global China Fund LLC – have sought an extraordinary general meeting (EGM) to call for the ouster of three directors, including Managing Director and CEO Punit Goenka.
The share price received a further spurt on September 22, when ZEEL announced an in-principle merger with Sony Pictures Networks India (SPNI).
Following the proposed merger, SPNI shareholders will hold a 52.93 percent stake in the combined entity and Zee shareholders will own a 47.07 percent stake, the company said, adding that Punit Goenka will continue to be the managing director and CEO of the merged entity.Internet Explorer Channel Network