Rakesh Jhunjhunwala Failed To Spot This Investment Opportunity? Big Mistake Turns Costly
Nov 21, 2013 | 11:53 AM IST
Nov 21, 2013 | 11:53 AM IST
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 Indias 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 dont 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.
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