Bachchan’s flair for in­vest­ment matches his skill on screen

Financial Chronicle - - FRONT PAGE -

SHAHENSHAH of In­dian cin­ema Amitabh Bachchan turned 75 on Wed­nes­day. Reams have been writ­ten about his en­vi­able suc­cess on the big screen as well as telly tube. But not much is known about the ace in­vestor in him.

Bachchan is a bold in­vestor. He has an un­canny knack to pick medium and small cap stocks that will give big re­turns. His well-known in­vest­ments in­clude those in Just Dial, Nitin Fire Pro­tec­tion In­dus­tries, Stam­pede Cap­i­tal and Fi­neo­tex Chem­i­cals.

He has picked lit­tle known Kisan Mould­ings, a Mum­bai-based a plas­tic prod­ucts com­pany fo­cused on man­u­fac­tur­ing plas­tic pipes and moulded fur­ni­ture, for his lat­est in­vest­ment. The stock’s per­for­mance tells how smart an in­vestor the ac­tor is. Last month, Kisan Mould­ings an­nounced is­suance of 50,00,000 eq­uity shares of Rs 10 on pref­er­en­tial ba­sis at a pre­mium of Rs 108.90 apiece. It fur­ther said Bachchan will subscribe 2,00,000 eq­uity shares of Kisan Mould­ings, which would come at a cost of Rs 2.37 crore. On Wed­nes­day, Kisan Mould­ings share closed at Rs 130.95 which means he has al­ready made a no­tional gain of Rs 24 lakh from his in­vest­ments in Kisan Mould­ings in just about a month. Bachchan was al­lot­ted 62,794 shares of tele­phone search en­gine Just Dial in 2011 be­fore the ini­tial public of­fer as an en­dorse­ment deal. The value of these shares is now over Rs 2.53 crore.

Ear­lier in Jan­uary 2014, Just Dial shares shot up to all-time high and Bach­han’s hold­ings were worth more than Rs 10 crore. In Stam­pede Cap­i­tal, Bachchan holds 2.38 per cent stake as on Septem­ber 30, 2017 worth Rs 3.56 crore. He had sold 0.10 per cent stake dur­ing July-Septem­ber quar­ter as he had held 2.48 per cent stake in the com­pany as on June 30, 2017.

His an­other in­vest­ment choice was Fi­neo­tex Chem­i­cal in which the su­per­star held 4.65 per cent stake as on March 31, 2016. He di­luted his stake in the next quar­ter, re­duc­ing the stake to less than 1 per cent.

In Au­gust 2015 he bought 15 lakh shares of Nitin Fire and Pro­tec­tion In­dus­tries, which led to the stock surg­ing 9.9 per cent in a sin­gle day. The 15 lakh shares are now worth more than Rs 1.16 crore. How­ever, it is not clear whether he has added more shares or sold some of his hold­ings as his stake when he bought them were less than 1 per cent of the total share­hold­ing of the com­pany.

The an­gry young man in reel life for sure has a good head on his shoul­ders when it comes to in­vest­ment in real life.

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