Rakesh Jhunjhunwala continues to hold stake in this auto stock in Dec quarter

Ace investor Rakesh Jhunjhunwala remained invested in auto major Escorts for the fifth straight quarter, as per public shareholding data.

The BSE data showed that Jhunjhunwala now holds 5.22 per cent stake in the company in the quarter ending 31 December, 2021. While sequentially, there was a rise of half a per cent, the number of shares held by the Jhunjhunwala remained constant at 6,400,000 shares, which he was keeping at least since December quarter of 2020. 

Shares of Escorts Limited on Thursday traded 0.082 per cent at Rs 1883.90 apiece on BSE during late trade. Shares of the company have risen over 56 per cent in the last six months whereas the auto stock has surged over 45 per cent in a year's period.

Escorts is a farm machinery and construction equipment major.

Earlier in December last year,  Escorts approved the preferential allotment of nearly 94 lakh shares to Japan's Kubota Corporation, which is seeking a majority control of the Indian partner and become a joint promoter, as per a BSE filing.

The development followed November's deal under which Kubota will acquire an additional 5.9 per cent stake in Escorts for Rs 1,872.74 crore, paving the way for the Japanese partner to become a majority stakeholder of up to 54-55 per cent for which it could invest nearly Rs 10,000 crore, including an open offer to public shareholders for an additional 26 per cent stake.

Escorts currently has 12 directors on its board. An ordinary resolution to approve related party transactions with Kubota was also passed with 99.99 per cent votes for it.

Jhunjhunwala is an Indian business magnate, stock trader and investor, who invests in both his name and his wife Rekha. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises.

He has an estimated net worth of $5.8 billion (as of December 2021).