Veteran investor Rakesh Jhunjhunwala has reduced his stake in Titan Company for the third consecutive quarter. A day after the stake was reduced, its share price fell by 1 per cent during intraday trading on BSE and it fell to Rs 1693.65 per share. Big Bull Jhunjhunwala has sold 22.50 lakh shares of this watch to jewelery maker in the first quarter of the current financial year, April-June 2021. However, his wife Rekha Jhunjhunwala retains a stake in Titan and holds 96.40 lakh shares in the company, which is equivalent to 1.09 per cent stake. Now according to the data available till the end of June quarter, the Jhunjhunwala couple has 4.26 crore equity shares of Titan Company i.e. both have 4.8 percent stake in the company.
According to the June 2021 quarter business update released by the company earlier this month, Titan’s business is recovering and stores are opening more days. Talking about revenue growth in addition to Boolean sales to the company in the June 2021 quarter, it had grown by 117 percent, out of which about 50 percent revenue came in April, 10 percent in May and 40 percent in June.
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Titan at record high in late June
In the last week of June, the share price of Titan had reached a record high of Rs 1800. Its price had risen by more than 91 percent in a year. Talking about this month, so far in July, its prices have fallen by 2.6 percent. However, this year its prices have climbed 8.5 percent. In the last quarter of the last financial year, January-March 2021, Jhunjhunwala had sold 22.50 lakh shares of Titan and left 3.97 percent stake in his company. In the last quarter October-December 2020, he had reduced his stake to 4.23 per cent.
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Insurance companies including LIC reduced stake
If we assess the closing share price of Tyne Company at Rs 1711.10 on the last trading day, Jhunjhunwala sold shares worth Rs 384 crore in April-June 2021. However, during this period, foreign portfolio investors (FPIs) increased from 18.10 per cent (16.06 crore shares) to 18.41 per cent (16.34 per cent) in the March 2021 quarter. LIC, the country’s largest institutional investor, also increased its stake in Titan Company from 3.91 per cent in the March 2021 quarter to 3.96 per cent in the June 2021 quarter. However, ICICI Prudential Life Insurance reduced its stake in Titan from 1.09 per cent (March 2021 quarter) to 1.08 per cent in June 2021 quarter. Insurance companies held 6.14 per cent stake in Titan in the March 2021 quarter, which declined to 5.50 per cent in the June 2021 quarter. Mutual funds also reduced the stake from 4.36 per cent to 4.03 per cent during this period. The share of retail investors also declined from 9.03 per cent to 8.93 per cent.
(Article: Surbhi Jain)