Rakesh Jhunjhunwala tweaked his portfolio in the January-March quarter, trimming his stake in one Tata Group stock and buying more of another. The ace investor increased stake in hospitality major Indian Hotels, and sold some Tata Motors DVR shares. So far this year, shares of India Hotels have zoomed 33%, extending their 50% up-move from last year. Tata Motors DVR shares have fallen more than 11%, after having skyrocketed more than 200% in 2021. Often called the big bull of domestic markets, Rakesh Jhunjhunwala regularly rejigs his portfolio.
Buys more Indian Hotels stock
Indian Hotels Company’s share price is currently trading at Rs 245 per share. At the end of the January-March quarter, Rakesh Jhunjhunwala held a 1.11% stake in the company or 1,57,29,200 equity shares. This is up from equity shares or 1,42,79,200 equity shares or 1.08% stake. At the end of the previous month, Indian Hotels company informed the stock exchanges that it has approved the allotment of 9,90,09,900 equity shares of face value Rs 1 each to eligible qualified institutional buyers at the issue price of Rs 202 per equity share and reflects a discount of Rs 1.48 on the floor price of Rs 203.48 per share. Through the QIP Indian Hotels managed to raise Rs 1,999 crore.
The increase in Rakesh Jhunjhunwala’s holding in the stock could have been through the QIP route. Additionally, Rakesh Jhunjhunwala’s wife, Rekha Jhunjhunwala continues to hold 1,42,87,765 equity shares of Indian Hotels. However, owing to the QIP and the subsequent increase in paid-up equity share capital, Rekha Jhunjhunwala’s stake is down to 1.01% from 1.08% at the end of December last year.
Tata Motors DVR shareholding trimmed
On the other hand, in the January-March quarter, Rakesh Jhunjhunwala sold some stocks of Tata Motors DVR, the Differential Voting Rights shares. Data available on the BSE website shows that big bull owned 2 crore equity shares of Tata Motors DVR at the end of December last year. Now, at the end of March, the same has come down to 1.5 crore.
Tata Motors DVR shares are down 11.65% so far this year to trade at Rs 222 per share. According to the domestic brokerage and research firm Motilal Oswal, DVR shares are different from ordinary shares as they offer lower voting rights compared to ordinary shares but are paid a dividend premium of 10-20%. “This ideally should make sense for the small and retail shareholders as they normally do not participate in the voting process,” they said.