Singer up over 40% in 2 days after Jhunjhunwala's RARE Investments picks up stake

Rakesh Jhunjhunwala

The share price of Singer India continued to zoom for the second day on August 17, rising 18 percent in the morning trade after hitting the 20 percent upper circuit the previous day as Rakesh Jhunjhunwala's RARE Investments bought more than 42 lakh shares in the company.

According to data available on the BSE, RARE Investments, Jhunjhunwala's asset management firm, bought 4,250,000 shares at Rs 53.50 apiece after the parent, Retail Holdings India BV, sold 12 million shares or about 22 percent stake in the Mumbai-listed firm through bulk deals.

It is the first investment decision known in the public domain by the firm after the billionaire investor died on August 14 of a cardiac arrest in Mumbai. He was 62.

Watch | Ramesh Damani looks back on the journey of Rakesh Jhunjhunwala – The trader, investor and friend

Singer India shares closed at Rs 69.15 on August 16 against the previous close of Rs 57.65. At 11.55 am, the stock was trading at Rs 82, up  18.5 percent.

The share price of home appliances and sewing machine maker Singer has surged by over 87 percent from Rs 43.55 to Rs 87.14 in the past month. In the last six months, Singer India has gained more than 40 percent. The stock has delivered a return of over 32 percent in this calendar year.

The company reported revenue growth of 49 percent year-on-year (YoY) for the quarter ended June. The profit after tax in the first quarter of FY23 stood at Rs 96 lakh against Rs 28 lakh YoY.

Singer India is one of the leading marketers of sewing machines and small home appliances in the country. It has manufacturing facilities for sewing machines in Jammu.

It has two business segments, sewing products and home appliances like food processors, mixer grinders, dry iron, steam iron, sandwich maker toaster, hand blender, and others. The company recently added a range of room coolers and water heaters to its product portfolio.