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Rakesh Jhunjhunwala cuts stake in Jubilant Ingrevia by 0.81%

Jhunjhunwala now holds 50 lakh shares or a 3.14 percent stake in the firm.

January 18, 2022 / 03:11 PM IST

Ace investor Rakesh Jhunjhunwala has sold 1.3 million shares in Jubilant Ingrevia Ltd, bringing down his stake in the company by 0.81 percent, according to the December quarter shareholding pattern filing on the BSE.

Jhunjhunwala sold shares valued at Rs 79.44 crore, as per today's share price. Jubilant Ingrevia is trading at Rs 616 apiece, down 3.3 percent. With this sale, Jhunjhunwala holds 50 lakh shares or a 3.14 percent stake in the firm.
This was the second consecutive quarter when Jhunjhunwala reduced his stake in the firm. In the September 2021 quarter, he sold 1.21 million shares.

In December 2020, Jubilant Lifescience got the NCLT approval for its demerger plan to form two separate entities for pharma and LSI (Life Science Ingredients) businesses. The LSI business includes specialty intermediates, nutritional products and life science chemicals. It got listed on bourses under the name Jubilant Ingrevia.

Jubilant Ingrevia has a presence across mainly three segments --Speciality Chemicals (33 percent of revenue), Nutrition and Health Solutions (18 percent) and Life Science Chemicals (49 percent), with strong backward integration and a leading market position.

"We are positive on the company on the back of strong demand environment, healthy market share, strong capex programme in the medium term and new additions of products, healthy B/S, and China+1 policy adopted by the companies worldwide. Jubilant will benefit from robust growth in specialty chemicals business and its focused initiatives to diversify from their animal feed
(nutrition) business and move towards higher value-added areas i.e. pharma and cosmetic-grade vitamins. As the proportion of sales of speciality products rises over the next two years, the stock could get rerated further," brokerage firm HDFC Securities said in its September report.

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Ravindra Sonavane
first published: Jan 18, 2022 02:58 pm
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