InvestorQ : How Rakesh Jhunjhunwala created more than 50% return in a week on its ZEE shares?
shivani Walawalkar made post

How Rakesh Jhunjhunwala created more than 50% return in a week on its ZEE shares?

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Sakshi Malhotra answered.
3 months ago
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Well, you can call it a quick move as Rakesh Jhunjhunwala’s investment firm bought more than 50 lakh shares of the ZEE at a price of Rs 220.40 per share. He made this move when the media firm was going through a discussion between its top two shareholders and the management. One of the biggest shareholders is Invesco Developing Markets Fund has called for an EGM seeking the removal of some existing board members including the CEO and MD.

I assume Rakesh Jhunjhunwala has some news or he was just risking on the big news by buying some shares of the company. As it turns out, the shares reached Rs 332.20 within a week of his trading, and news of the merger of ZEE with Sony busted. The value of his current holding is Rs 166.15 crores as compared to Rs 110.24 crore at the initial investment. That is about a 50% return on his investment. He made the best out of the situation, because he may have analyzed something at the beginning itself.

However, from the investment perspective, one question that remains is why Punit Goenka is continuing to be the MD when there was so much controversy around his removal? Soon after the issue came out, the shares of ZEE witnessed a sudden spike. So, how long this upward movement in the company’s share will go on. We can wait for Rakesh Jhunjhunwala’s further action in this context.
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