Modi leads tributes to India’s ‘Big Bull’ Rakesh Jhunjhunwala
VETERAN stock market investor Rakesh Jhunjhunwala, who was described as India’s Warren Buffett, died in Mumbai last Sunday (14) at the age of 62 following suspected cardiac arrest, a source in his newly set up airline, Akasa Air, said. The cause of death was not known.
Known as the Big Bull of Indian markets, his net wealth was estimated at $5.8 billion (£4.81bn), according to Forbes.
An investor with the Midas touch, Jhunjhunwala was said to be the 48th richest man in India.
Prime minister Narendra Modi expressed grief over Jhunjhunwala’s death.
“Rakesh Jhunjhunwala was indomitable. Full of life, witty and insightful, he leaves behind an indelible contribution to the financial world,” he tweeted.
Jhunjhunwala recently teamed up with ex-Jet Airways CEO Vinay Dube and former In-diGo head Aditya Ghosh to
launch Akasa Air – India’s newest budget carrier. The airline began commercial operations this month with a maiden flight from Mumbai to Ahmedabad.
A chartered accountant by education, Jhunjhunwala chose stock markets instead of auditing accounts. In 1985, he invested `5,000 (£52) and by September 2018, that capital had grown to `110 bn (£1.15bn).
His portfolio includes companies such as Star Health, Titan, Rallis India, Escorts, Canara Bank, Indian Hotels Company, Agro Tech Foods, Nazara Technologies and Tata Motors.
He had a stake in 47 companies at the end of the June quarter. Titan, Star Health, Tata Motors and Metro Brands were some of his largest holdings.
He leaves stakes in around three dozen Indian companies and a legacy of quoting one-liners like “the trend is your friend” and “the only rule I have is there are no rules”.
Jhunjhunwala was the chairman of Hungama Media and Aptech and was on the board of directors of firms including Viceroy Hotels, Concord Biotech, Provogue India and Geojit Financial Services.
Born on July 5, 1960, in a Rajasthani family, he grew up in Mumbai, where his father worked as a commissioner of income tax. He graduated from Sydenham College and enrolled at the Institute of Chartered Accountants of India.
He earned his first big profit in 1986 when he bought 5,000 shares of Tata Tea at `43 (45p) and the stock rose to `143 (£1.49) within three months. In three years, he had earned more than `2 million (£20832.24).
When Jhunjhunwala entered the stock market, the Sensex, the Bombay Stock Exchange’s benchmark index, was at 150 points.
According to a Business Standard report, Jhunjhunwala was part of a bear cartel in the early 1990s, when he bet against stocks manipulated by the infamous stockbroker, Harshad Mehta. The cartel held on to their short positions despite rising prices of the stocks which ultimately collapsed as Mehta’s scam was unearthed.
His privately owned stock trading firm, Rare Enterprises, derived its name from the first two initials of his name and his wife Rekha, who is also a stock market investor.
Jhunjhunwala is survived by his wife, whom he used to call his only client, and three children.
“All I’ve known is trading and investing. I don’t want to do anything else in life,” Jhunjhunwala told Reuters 10 years ago. “I’ll call it quits the day I die.”
Jhunjhunwala had told Reuters 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.
Last Monday (8), speaking to domestic news channel CNBCTV18, he said that India’s economy, Asia’s third-biggest, was “entering a golden age,” expressing the hope that “my fellow Indians are as optimistic as I am.”
“Investor, bold risk taker, masterly understanding of the stock market, clear in communication – a leader in his own right,” India’s finance minister Nirmala Sitharaman wrote in a tribute on Twitter. “Had strong belief in India’s strength and capabilities.”
Uday Kotak, the chief executive of Kotak Mahindra Bank, and his school and college mate, said Jhunjhunwala “believed stock-India was undervalued. He is right.”
Kotak tweeted: “Amazingly sharp in understanding financial markets. We spoke regularly, more so during Covid. Will miss you Rakesh!”