Rakesh Jhunjhunwala-owned Rare Enterprises buys 3 crore shares in JP Associates; stock spikes 14% intraday

Shares of Jaiprakash Associates rallied nearly 15 per cent on Friday after data showed Rakesh Jhunjhunwala-owned Rare Enterprises bought some stakes in the real estate firm in a block deal. The stock gained as much as 14.88 per cent to Rs 22 on the BSE. Over 129.94 lakh shares exchanged hands on the counter, as compared to its two-week average of 105.46 lakh shares. 

On Thursday, Rakesh Jhunjhunwala's Rare Enterprises bought 3 crore shares in Jaiprakash Associates at Rs 18.37 per share amounting to nearly Rs 55 crore, as per bulk deal data available on the National Stock Exchange (NSE). 

Investors often lap up the stocks where ace investor Rakesh Jhunjhunwala invests directly or indirectly. Interestingly, the name of Jhunjhunwala's Rare Enterprises combines the first two letters of Rakesh's name (Ra) and her wife Rekha Jhunjhunwala's name (Re).  

Meanwhile, Jaiprakash Associates has been gaining for the last five days, rallying 50 per cent from Rs 14.70 on Monday to Rs 22, today's intraday high level. JP Associates registered a whopping 17 per cent gains in the previous session following the positive developments developments around the bid for Jaypee Infratech. JP Associates is Jaypee Infratech's parent company. 

Also read: This Rakesh Jhunjhunwala portfolio stock surged 347%, more to come

Wednesday’s meeting of committee of creditors seem to indicate that Adani Group could be entrusted with the task of completing the unfinished flats of Jaypee Infratech besides ensuring that lenders face minimum haircut, reported moneycontrol in a news report.