High profile stock trader and investor in Indian stocks, Rakesh Jhunjhunwala, has sold his entire stake in Mid-Day Multimedia.
The latter said in a statement on Friday, a day after rival Jagran Prakashan said it was in talks for a 'strategic alliance' with Mid-Day.
On Thursday, Jagran Prakashan's chief financial officer said the firm was in talks with Mid-day for a strategic alliance, and did not rule out the possibility of a stake buy.
Investor Rakesh Jhunjhunwala has sold 4.7 percent held by him and his wife in the open market on Thursday, according to a statement filed with the BSE. This means Rakesh does not holds Mid-day multimedia stocks anymore in his investment portfolio.
Checkout Rakesh Jhunjhunwala Portfolio here.
Why?
Rakesh Jhunjhunwala invested in the media firm in late 2004 and has been holding on to his 2.25 million shares all this while.
This is one investment ace investor Rakesh Jhunjhunwala would not be too proud off. The ace investor has sold all of his 4.26% stake (from five and half year old investment) in Mumbai-based media house Mid-day Multimedia almost at par.
The loss-making media house known for its local tabloid in Mumbai has not given any dividend since Jhunjhunwala invested so he would not have encashed much outside his directors fees at the board of the company.
Jhunjhunwala invested sometime in the September-December quarter of 2004 and had been holding on to his 2.25 million shares all this while. The shares are believed to have been purchased around Rs 30 a piece. Jhunjhunwala sold his entire shares on Thursday at an average price of around Rs 32, which could be at par with the original investment.
The stock had shot up soon after Jhunjhunwala invested and went on to hit all time high of Rs 118 in September’05, around the time the bull run was gaining pace. But it dropped down and never really could move up and had been more or less flat all this time.
The stock’s been in action over news that Jagran Prakashan (in which Blackstone has just picked an indirect stake for Rs 225 crore) is in talks to acquire a stake. The company has stated it is "In talks with various media partners and examining the possibilities for strategic & operational alliances. The company receives various proposals from media players for the alliances on a regular basis as it helps both the companies to expand and improve operating efficiencies, capabilities and reach. The Company would like to clarify that no specific decision has been taken in this regard."
