Jhunjhunwala did the right thing by exiting Mid-Day: Udayan

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Jhunjhunwala did the right thing by exiting Mid-Day: Udayan

Udayan Mukherjee, Managing Editor of CNBC believes it was the right move on the part of Jhunjhunwala of checking out of the stock.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Jagran in talks with Mid-Day for 'strategic alliance' ALSO READ See what other CNBC-TV18 anchors have to say

Well-known investor, Rakesh Jhunjhunwala sold his 4.5% stake in multiple-media conglomerate Mid-Day Multimedia   after reports made rounds of media firm Jagran Prakashan might pick up a stake in the company.

Udayan Mukherjee, Managing Editor of CNBC-TV18 believes it was the right move on the part of Jhunjhunwala of checking out of the stock. 

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

I think Rakesh Jhunjhunwala did the right thing by checking out of the stock. It was not a great investment-certainly not by his standards but generally too-it's not one of the jewels in his portfolio.

Somebody thought the stock went up 12% because of some speculation and he checked out of the stock and dumped his entire quantity, which I think is the same thing to do because as we were discussing yesterday unless the current promoter of Mid Day gets out of the operation, hands over the stake to other media company, no great turnaround will happen in the fortunes of Mid Day from a business and financial stand point.

So you will get this sporadic excitement of who is coming in and who is going out but unless that deal is done in that entirety, I don't see any great turnaround happening. It was the right thing, which the well-known investor did yesterday. He sold 4.5% but I don't know whether Jagran Prakashan picked up that stock. If they did not and they are interested creating largish holding in the company then I am not even sure this will end in a big equity sale to Jagran in the first place, so you need to be a bit cautious about the newsflow too.