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Rakesh Jhunjhunwala became richer by 17%, that too in just 1 day - Reason is this stock
Jaiprakash, which has been among worst performers list of Jhunjhunwala's portfolio, has finally reversed the trend. This week alone, the company has risen by nearly 10%, making Jhunjhunwala and many investors rich.
Over 17% gains witnessed in Jaiprakash Associate alone on Thursday’s trading session. This was due to submission of proposal once again to lenders of its real estate defaulter Jaypee Infratech. After touching an intraday high of Rs 6.08 per piece, the Jaiprakash finished at Rs 5.92 per piece up by 14.07% on Sensex. Because of this upbeat, one investor has definitely clocked gains in his portfolio. This investor is none other than big bull Rakesh Jhunjhunwala who made an eye for Jaiprakash from last year.
Jaiprakash which has been among worst performers list of Jhunjhunwala’s portfolio, has finally reversed the trend. This week alone, the company has risen by nearly 10%, making Jhunjhunwala and many investors rich.
In Jaiprakash, Jhunjhunwala holds about 1.13% with 27,500,000 equity shares. Because of Jaypee’s crises, the parent has witnessed major impact on its share price, however, last year Jhunjhunwala was optimistic in the company which is why he had bought 50,000,000 equity shares in June 2018 quarter.
However, since then a lot has changed. While Jaypee goes ahead with its bankruptcy procedures, investors have been losing in Jaiprakash. So did Jhunjhunwala!
Now the current scenario is such that, Jaiprakash has once again submitted a new proposal to a consortium of banks led by IDBI Bank.
In its filing, Jaypee said, “the promoter Jaiprakash Associates Limited also submitted a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code, 2016 for consideration of the Committee of Creditors.”
However, the details of settlement is not disclosed.
The realty arm of Jaiprakash also saw boost in its share price following the development, so much, that it rose by nearly 5% on BSE.
Currently, Jaypee is under Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016. Its affairs, business and assets are being managed by the Interim Resolution Professional, Anuj Jain, appointed by the National Company Law Tribunal.
Jaypee was in RBI’s first list of defaulters who were chalk down for insolvency resolution.
According to Economic Times, Jaypee has about Rs 9,800 crore outstanding debt to lenders like Axis Bank, IDBI Bank, IIFCL, ICICI Bank, IFCI, Jammu & Kashmir Bank, LIC, SBI, Union Bank, Syndicate Bank, Srei Equipment Finance, Corporation Bank and Bank of Maharashtra.
32,000 homebuyers have been sitting with baited breath after when its developer turned defaulter against loan amount Rs 526.11 crore from IDBI Bank.
Well what will be the outcome ahead of Jaypee Infratech will be keenly watched. It would be interesting to note, on lenders take over proposal submitted by Jaiprakash.
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