Jhunjhunwala Portfolio: This stock included in the portfolio of veteran investor Rakesh Jhunjhunwala is showing signs of growth.
Jhunjhunwala Portfolio: Escorts included in the portfolio of veteran investor Rakesh Jhunjhunwala have been approved by the market regulator SEBI to bring an open offer. Through this offer, Japanese agricultural implement maker Kubota wants to increase its stake in Escorts and wants to become a co-promoter. After the approval of SEBI, there is a possibility of a jump in its prices. As per the latest shareholding pattern, Jhunjhunwala holds 5.68 per cent stake in Escorts. He has 75 lakh equity shares in it and according to the current price, Jhunjhunwala’s stake in Escorts is about Rs 1405 crore.
According to a note by brokerage firm Edelweiss, this open offer can be announced in the next two to three weeks and can be around two weeks after the start of its tendering period. After getting approval from SEBI, now the company can give its information to the stock exchanges in a few days. Today (March 2), its prices have strengthened by about 1 percent and are at a price of Rs 1874.
Unemployment Rate: The cut in the budget of MNREGA increased the unemployment rate, reached a record level of six months last month
Kubota increasing stake in Escorts
Kubota is going to be the co-promoter of Escorts. The company has been continuously increasing its stake in the company through escorts preferential issue and as per data available on February 18 this year, Kubota held 16.73 per cent stake in the company. Kubota had a 6.73 per cent stake in the first escorts. At present, Kubota holds 2,16,21,414 equity shares of Escorts. Now according to Edelweiss, the open offer of escorts can come in the next two to three weeks and this whole process can be completed in five-and-a-half months, after which Kubota can become a co-promoter in Escorts. However, the exact timeline can be known only after the open offer is published.
Share price expected to rise
According to analysts of the brokerage firm, Escorts can now see a rise in its prices after getting the approval of market regulator SEBI. Today its prices have strengthened by about 1 percent and now Pagaria of Edelweiss believes that in the next few days it can reach a height of Rs 1950. Today in intra-day it had reached a high of Rs 1881 on NSE but then it slipped to a price of Rs 1856.50 due to profit booking in it.
(Article: Kshitij Bhargava)
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