Bombay:
Dalal Street had been full of risks. People who made large fortunes often made headlines as scammers, leading to the stock markets in post-liberalized India being viewed with suspicion.
Rakesh Jhunjhunwala, a partner at RARE Enterprises, who amassed a USD 5.8 billion fortune and earned the label of India’s largest individual investor, was largely an exception, leaving a relatively clean slate.
Unlike names like Harshad Mehta and Ketan Parekh, whose rise in fortunes was tainted with scam links, the latest ‘Big Bull’ in the more regulated market had less baggage on this front.
Often compared to legendary investor Warren Buffett, Jhunjhunwala was unabashed about wealth creation and flamboyantly spread his connections, a sign of the shift to a market-based economy that took root in the early 1990s.
While he didn’t make major headlines for scams, Jhunjhunwala did appear in some instances of insider trading and there was also speculation that he might be at the forefront of stock trades ahead of major news events. In 2021, he and others settled an insider trading case involving Aptech by agreeing to pay Rs 37 crore through the consent route, whereby a person can close a pending case without admitting or denying the allegations.
A 70 crore profit on an investment in Zee Enterprises in a short space of time, by investing in the stock days leading up to the board’s decision on a merger with rival Sony Pictures Networks in 2021, had also sparked chatter about his behaviour.
However, it was Jhunjhunwala’s research-based long-term betting on stocks such as Titan and Indian Hotels Company that made him one of the biggest names in the Indian markets.
Every move in his portfolio was closely monitored by the growing number of investors in India, who wanted early access to scrips, which would eventually break out.
Some bets, especially on infrastructure, did not yield Jhunjhunwala. But the proverbial ‘humiliating effect’ was missing, as he would often succeed in another share, showing his Midas touch.
Those in the know say that behind the value creation was an operation of deep research conducted by him and analysts at RARE Enterprises’ Nariman Point office (which is named after the first two letters in the name of Rakesh and his wife Rekha) .
And when companies underperformed, Jhunjhunwala was relentless, like the iconic character Gordon Gekko in the movie ‘Wall Street’. Management of quite a few portfolio companies faced questions from the enraged Jhunjhunwala himself during analyst talks. Titan’s management, a two-decade investment for Jhunjhunwala, was on the receiving end of such a grueling public questioning in 2020.
Candor and humor came to define Jhunjhunwala. Unlike most of his contemporaries who shy away from a public profile, Jhunjhunwala participated in industry seminars and also spoke passionately about a variety of topics outside the markets.
Many of his views were also closely aligned with those of the ruling NDA, something that made his 2021 meeting with Prime Minister Narendra Modi less surprising.
His newest venture in the heavily regulated aviation sector, Akasa Air, also got off to a smooth start.
But it wasn’t always easy and having a lot of money didn’t always help. His house purchase in a town in south Mumbai is often cited as a story of perseverance.
Together with his wife Rekha, Jhunjhunwala bought the 14 flats that made Ridgeway Apartments in deals spanning five years, demolished the structure after taking full control and is now building a 14-storey pathway on the same lot.
The trader in Jhunjhunwala drew life lessons from all his deals and – as he was used to in public – also thought about buying an apartment. Jhunjhunwala said he had to sell his stake in leading rating agency Crisil to fund the emotional decision to buy Ridgeway flats, and he regretted missing the rally in the stock later on.
He often asked investors to speculate less and research more. He compared day trading to having a mistress, which he said was fine, but you shouldn’t have a lot of them, and asked everyone to focus on having long-term strategies as well.
Speaking of costume, he was not the neat trader in finely cut suits and was usually undergarmented. Most of his public appearances were simple trouser-shirt affairs, with some gutkha or paan (betel nut) in his mouth as well. However, he loved food and alcohol.
Not shying away from sharing his thoughts, Jhunjhunwala had recently said he wasn’t paying enough attention to his health during his decades-long pursuit of wealth. He had multiple ailments and struggled to get up and walk to the end.
The wheelchair-bound Jhunjhunwala’s dance performance to the popular Bollywood song ‘Kajra Re’ on a private evening defined his character for some. He was down, but not out, they said.
At the inauguration of Akasa Air’s flight operations at Mumbai airport on Aug. 7, Jhunjunwala was confined to a wheelchair and looked frail, prompting many to voice concerns for his health.
Jhunjunwala, who often spoke of the fact that no one could predict the weather, death, the market or the women, took his last breath on Sunday morning.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)