Rakesh Jhunjhunwala closed Akasa deal in 48 hours: Bhaskar Bhat

.Akasa Air operated its inaugural flight on August 7, 2022. A week later, Rakesh Jhunjhunwala passed away.

Moneycontrol revisits the investing philosophy of late Rakesh Jhunjhunwala on his first death anniversary

Rakesh Jhunjhunwala evaluated and executed the Akasa deal within 48 hours, Bhaskar Bhat, the former managing director of Titan company said in an interview to Ramesh Damani, recalling his association with the late Big Bull.

“He was always bullish on airlines. He had invested in Indigo and SpiceJet, but somehow it didn’t work out,” Bhat said. “When this (Akasa) opportunity came, with the sheer brainpower and horsepower he brought it to the table, he was able to evaluate and close it in 48 hours.”

Jhunjhunwala invested $50 million in Akasa Air in 2021. The airline operated its inaugural flight from Mumbai to Ahmedabad on August 7, 2022, a week before Jhunjhunwala’s untimely demise. Jhunjhunwala was among the passengers on Akasa’s inaugural flight.

“'Invest first and investigate later'  was RJ’s favourite line, but the thinking behind that was deep. He was working 24 by 7. He was always looking at opportunities and evaluating sectors. He might not be in that particular sector, yet he evaluated it. So when an opportunity came, he was well prepared to take a quick decision. He had done his homework and kept doing his homework,” Bhat said.

According to Amit Goela, partner at Jhunjhunwala’s Rare Enterprises investment firm, the Akasa story reflects his belief in India. He said Indians would want a better way to travel. India is estimated to be the third-biggest aviation market in the world by 2030.

The low-cost airline is looking to add 300 pilots and aims to operate international flights by the end of 2023, Akasa Air CEO Vinay Dube said.

Jhunjhunwala had invested Rs 400 crore in IndiGo during its IPO in 2015.