1,800% return in 5 years: Rakesh Jhunjhunwala to invest nearly Rs 31 crore in this smallcap firm
Rakesh Jhunjhunwala, an investor with a Midas touch, is often referred to as India's own Warren Buffet
Shares of Raghav Productivity Enhancers hogged the limelight on Monday after the company on Sunday informed bourses that ace stock picker Rakesh Jhunjhunwala to invest up to Rs 30.90 crore in the company through unsecured compulsory convertible debentures.
Following the development, the scrip jumped 5% to Rs 716.90 in the early trade, while the benchmark BSE Sensex was up 0.60% at 52,901.
In a regulatory filing, Raghav Productivity Enhancers said that the board has approved to issue unsecured compulsory convertible debentures (CCD’s) for an amount of up to maximum Rs 30,90,00,000 by way of a preferential allotment on a private placement basis to Rakesh Jhunjhunwala. The company will issue 6,00,000 CCDs at a price of Rs 515 per CCD. Jhunjhunwala, an investor with a Midas touch, is often referred to as India’s own Warren Buffet.
Raghav Productivity Enhancers further highlighted that each CCD’s shall carry a simple interest rate of 15% per annum. The CCDs will be converted into equity shares at the end of 18 months from the date of allotment.
“The board approved the conversion price of equity share at the higher of the following: i) Rs 515 per share including the premium of Rs 505 per share. ii) Price as determined as per Regulation 164(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, Relevant date referred to in regulation 161(a) to be considered for the same,” the company said in a filing.
Raghav Productivity Enhancers, formerly Raghav Ramming Mass Limited, is a ramming mass manufacturing company. It is engaged in the business of manufacturing and selling silica ramming mass, quartz powder and trading of galvanized iron (GI) sheets.
Shares of the company have jumped nearly 1,800% during the past five years and 610% in the last one year till August 2, 2021. For the latest quarter ended June 30, the net profit of the company jumped to Rs 4.28 crore against Rs 0.58% in the same quarter last year. Net sales also more than doubled YoY to Rs 20.61 crore.