JHUNJHUNWALA
of around $ 5.8 billion, Jhunjhunwala was the 36th richest billionaire in India, according to Forbes’ 2021 listing. Son of an income tax officer, he is survived by his wife and three children.
Born on July 5, 1960 in Rajasthan, Jhunjhunwala was a chartered accountant by education. Starting off his journey in stock markets while still in college with a capital of just ₹ 5,000 in 1985, he recently teamed up with ex-Jet Airways CEO Vinay Dube and former IndiGo head Aditya Ghosh to launch Akasa Air -- India’s newest budget carrier. The airline began commercial operations this month with its maiden flight from Mumbai to Ahmedabad.
As a teenager, Jhunjhunwala had started dabbling in stocks and went on to manage a stock trading firm, RARE Enterprises. He made his first big profit by buying 5,000 shares in Tata Tea with borrowed money, confident the markets had under-estimated the potential of a company looking to grow at a time of rising yield production. He trebled his money within months.
Better, bigger investments followed, including a leveraged bet in the late 1980s on iron ore exporter Sesa Goa. Jhunjhunwala bought the stock at 60-65 rupees and sold at 2,200 rupees.
His firm’s investments include many Tata Group companies, such as Tata Motors, watchmaker Titan, Tata Communications and Indian Hotels Co, which runs the Taj hotels.
Other investments include Indiabulls Housing Finance, Star Health Insurance, Federal Bank and vocational training company Aptech Ltd.
In an interview to news agency Reuters, Jhunjhunwala had said that the growth of the Indian stock market since the country’s economy was liberalised in 1991 - a period in which the main Sensex index has risen about 40-fold - was a big factor in his success.
“Investor, bold risk taker, masterly understanding of the stock market, clear in communication - a leader in his own right,” Union finance minister Nirmala Sitharaman wrote in a tribute on Twitter. “Had strong belief in India’s strength and capabilities.”
Other politicians and industry leaders too mourned his death.
Richest Indian Gautam Adani said Jhunjhunwala inspired an entire generation. “Extremely saddened by the untimely passing away of the most legendary investor that India has had. Shri Jhunjhunwala inspired an entire generation to believe in our equity markets with his brilliant views. We will miss him. India will miss him but we will never forget him. RIP,” Adani tweeted.
Tata Sons Chairman N Chandrasekaran said Jhunjhunwala believed in India and the sheer potential of the country. “This conviction led him to consistently make bold decisions throughout his life and career. He had tremendous regard for the Tata Group. Mr. Jhunjhunwala’s passing is an irreparable loss and we extend our deep condolences to his family and friends,” he added.
Mining baron Anil Agarwal said Jhunjhunwala will forever be known as the man who popularised public understanding of stock markets. “Breaks my heart to know that a friend of mine, and more widely known as the big bull of our stock market, is no more... Rakesh Jhunjhunwala will forever be known as the man who popularised public understanding of stock markets. My prayers go out to his family & friends. Om Shanti,” he tweeted.