28th Jun 2018 | 13:04 PM IST

Rakesh Jhunjhunwala Failed To Spot This Investment Opportunity? Big Mistake Turns Costly

Ace traders might not usually judge a company's worth effectively all of the time or possibly there have been different extraneous reasons that distracted or turned them off. This stands real for India's legendary investor Rakesh Jhunjhunwala too! The market guru can also well have missed an opportunity while it was offered on a plate to him, and now he's inside the race to gain it returned.

It seems like Rakesh Jhunjhunwala, who's a few of the front runners within the race to buy India’s biggest standalone health insurer star health & Allied insurance company, was as soon as offered the company at one-third of the price the big Bull is looking at paying now along with other private equity buyers. A report in economic times said, quoting an unnamed source, that Jhunjhunwala was presented star insurance at less than Rs 2000 crore some years in the past.

earlier in June ET had reported that Rakesh Jhunjhunwala along with WestBridge Capital and Madison is likely to buy 93.99 per cent in star health insurance at a whopping valuation of Rs 6,500 crore!

“The agreement will be signed in the next few days,� reported ET, quoting a source. “They will buy out 93.99 per cent, valuing the company at Rs 6,500 crore. The remaining 6.01 per cent will be with two individual shareholders of ETA Trading,� the source added.

WestBridge will likely own 51 per cent, Jhunjhunwala 33 per cent and Madison 16 per cent.

ICICI Lombard has reportedly pulled out of the race to buy star health because of differences over valuation.

In a latest interview with CNBC TV18, Jhunjhunwala stated that he's awaiting a closure at the insurance deal by the give up of this month or first week of July.

On asking if he is looking at more such offers in insurance space, Rakesh Jhunjhunwala standard that there are matters on the horizon however much smaller.

"I don’t have that kind of money to put in so many other companies and I am looking at a lot of opportunities but they are much smaller," he said.

 

ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells...
FULL BIO

LEAVE A COMMENT

RECOMMENDED READING

Opportunities are Less but the Best.

Our Analysis Equity markets witnessed weak trading sessions during the entire week as the coronavirus (Covid-19) cases in India continued to rise despite nationwide lockdown. The
Read More>>

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and
Read More>>

Stability on the Cards. Lock Down Acclaimed well in India

Our Analysis The 'Lock down' in India turned out to be the best thing we had in the recent past weeks. Number of positive cases in India showed that the lock down is well acclaimed.
Read More>>

Financial Crisis, 2008 vs COVID-19, 2020

What does this mean? COVID-19 correction is similar to what we had during the Financial Crisis 2008. Certainly yes. That was the year when investors actually made money in quick
Read More>>

Investors Cautious over COVID-19. Stability Awaited.

Our Analysis The relentless selling on Dalal Street continued with no signs of abating as stocks across-the-board, especially the financial sector, slipped like a pack of cards.
Read More>>