Rakesh Jhunjhunwala’s Rare Enterprises earns Rs 70 Cr in 10 days as ZEEL shares rally 65% from purchase price

ZEEL share price has surged 65 per cent to Rs 362.85 in just 10 days after Rakesh Jhunjhunwala bought shares at Rs 220.44 apiece last week.

After Rakesh Jhunjhunwala bought shares for Rs 220.44 apiece last week, the ZEEL share price rose by 65 percent to Rs 362.85 in just ten days. Rare Enterprises, owned by Jhunjhunwala, purchased 50 lakh shares in Zee Entertainment Enterprises Ltd for Rs 110.22 crore.

The investment is now worth Rs 181.4 crore, a mark-to-market profit of Rs 142 per share, or Rs 71.4 crore, above the acquisition price, based on current pricing and back-to-back upper circuits in the stock from the date of his purchase.

ZEEL’s stock has risen 117.53 percent since hitting a 52-week low of Rs 166.80 last month. The Board of Directors of Zee Entertainment Enterprises approved a merger with Sony Pictures Networks India on Wednesday and the execution of a non-binding term sheet that will allow Punit Goenka to continue in his position for another five years. Despite the recent surge, analysts claim that ZEEL stock is still trading at a 20x multiple.

“Assuming the EBITDA margin returns to historical levels, increasing corporate governance and operational performance could help greatly in the long run,” said Siddhartha Khemka, Motilal Oswal Financial Services’ Head of Retail Research.