Mumbai: India’s ace stock market investor Rakesh Jhunjhunwala will invest nearly Rs 31 crore in Jaipur-based mining company Raghav Productivity Enhancers Limited (RPEL). According to a regulatory filing by the company last Sunday to the Bombay Stock Exchange (BSE), the Board of the company has decided to issue up to 6 lakh Unsecured Compulsory Convertible Debentures (CCD’s), which are worth up to Rs 30.90 crore, to Jhunjhunwala.
The Board further decided that these debentures will be converted into equity shares at the end of 18 months from the date of allotment. A compulsory convertible debenture (CCD) refers to a type of bond which must be converted into stock by a specified date.
Established in 2009 as Raghav Ramming Mass Private Limited, RPEL is the largest ramming mass producer in the world, says the company website.
“We are the world’s largest manufacturer of Silica Ramming Mass. We offer customized lining solutions for secondary steel producers and foundries, enabling non-linear productivity growth and a massive reduction in power and overhead costs for our clients,” claims the firm.
Stock hits upper circuit
According to the information available on the BSE website, the stock price of Raghav Productivity Enhancers hit the upper circuit on Monday as well as Tuesday. While the stock closed at Rs 716.90 with 5 per cent appreciation on Monday, it gained nearly Rs 35 on Tuesday to close at Rs 752.90.
Notably, the price of the stock has gone up by Rs 133.25 or 21.53 per cent in the last five days. The data available on the BSE website further reveal that the stock had hit the upper circuit (5% upper ceiling) on all the trading days since July 27.
Read: CarTrade IPO to open on Aug 9: Check price band, other details
Rakesh Jhunjhunwala’s latest investments
Rakesh Jhunjhunwala’s investment in RPEL comes just a couple of weeks’ after media reports suggested that he bought 1 crore shares or 2.17 per cent stake in housing finance company Indiabulls Housing Finance Ltd. Indiabulls Housing Finance Ltd is one of India’s leading housing finance companies (HFC). It is a part of Indiabulls Group and offers home loans in the affordable housing segment.
Last month, media reports further suggested that Jhunjhunwala purchased a 1.39 per cent stake in the Steel Authority of India (SAIL) during the April-June period. Besides, he has raised his stake in Edelweiss Financial Services and Federal Bank while he offloaded stakes in two Tata group companies - Tata Motors and Titan during the same period.
While news related to his investments in existing companies is considered a routine matter, the news of his upcoming airlines raised curiosity in the market.
In an interview to Bloomberg Television last week he revealed that he is considering an investment of USD 35 million (about Rs 260 crore) for a 40 per cent stake in the new airlines.
“The ultra-low cost airline will be called Akasa Air and the team, which includes a former senior executive of Delta Air Lines Inc., is looking at planes that can carry 180 passengers,” Jhunjhunwala told during the interview.
Rakesh Jhunjhunwala – India’s Warren Buffet
Rakesh Jhunjhunwala, who is also known as India's Warren Buffett, is closely watched by the stock market participants.
He is a qualified Chartered Accountant and manages the asset firm Rare Enterprises. According to stock market experts, he buys stocks mostly in the finance, technology, retail, and pharma sectors. As per data by Trendlyne, Jhunjhunwala publicly holds 38 stocks with a net worth of over Rs 20,294 crores.
Read: K M Birla offers his stake to govt: What's next for Vodafone Idea
