Moneycontrol
Jun 11, 2015 08:02 AM IST | Source: CNBC-TV18

Surana Solar, and the case of the other Rakesh Jhunjhunwala

Shares in Surana Solar went on a tear over the past few days after it appeared from NSE data that ace investor Rakesh Jhunjhunwala had picked up 2.5 lakh shares in the firm on June 9.


Shares in Surana Solar went on a tear over the past few days after it appeared from NSE data that ace investor Rakesh Jhunjhunwala had picked up 2.5 lakh shares in the firm on June 9.


But it soon turned out to be a case of a namesake of the Big Bull who had invested in the company rather than the billionnaire investor himself. This was confirmed to CNBC-TV18’s Varinder Bansal by the Big Bull himself who denied picking up any stake in the firm.


CNBC-TV18 learns that this bulk deal was brokered by Rajkot-based Sun Flower Broking and that the account bearing the name Rakesh Jhunjhunwala was opened by a Kolkata-based client of this firm. This account is not more than a month old.


The volumes in the Surana counter, which averaged about 1.5-2 lakh in the past two-three weeks, surged to about 75 lakh today.


Interestingly, the stock was up about 9.1 percent for most part of the day, before turning 20 percent lower, soon after CNBC-TV18 broke the news.

The trade appears to be a classic pump-and-dump operation and sources said the trick may be repeated with other stocks.

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