Rakesh Jhunjhunwala Acquires Stake In Nalco, Shares Climb 7% After Disclosure
Shares of National Aluminium Co. rose nearly 7% after the company disclosed that billionaire-investor Rakesh Jhunjhunwala had purchased stake in it.
The state-run aluminium producer's shares rose to Rs 103 apiece at around 3:20 p.m. on Tuesday after it disclosed its shareholding pattern for the quarter ended September, which revealed Jhunjhunwala's 1.36% stake, amounting to 25 million (2.5 crore) shares in the company.
While the exact date and price of the stake purchase wasn't revealed, the deal was concluded in the second quarter.
The Government of India holds 51.28% in Nalco, with public shareholding comprising the rest.
Shares of Nalco have risen over 132% so far this year compared with the NSE Nifty Metal Index's 79% gain.
The deal comes amid a global energy shortage and a surge in aluminium prices to a 13-year high.
JPMorgan has upgraded Nalco to 'Neutral' rating from 'Underweight', with a target price of Rs 104 apiece.
Systematix Institutional Research reiterated its 'Buy' rating on the company and expects it to benefit from rising LME alumina/aluminium prices.