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Rakesh Jhunjhunwala to invest in a stock that has given 2000% return in 5 years - Mint

Rakesh Jhunjhunwala portfolio is in news these days after the regulation filing by a small-cap company Raghav Productivity Enhancers. The metal company informed that Big Bull is going to buy up to 6 lakh unsecured compulsory convertible debentures (CCDs) of the company worth 30.9 crore. The small-cap company informed about the development on 2nd August 2021 and the news worked as value pick for retail investors. The small-cap stock has surged more than 27 per cent since then by scaling northward from 716.90 per stock levels to 912.50 mark (Wednesday close price at BSE).

However, if we look at the Raghav Productivity Enhancers share price history, the small-cap metal stock has delivered around 80 per cent return to its share holders in the last one month as it has jumped from 504.85 per stock levels to 912.50 per equity share price mark in this period. Similarly, the multibagger stock has given 273 per cent return in the last 6 months as it rose from 244.45 per stock mark to 912.50 levels. However, in the last one year, the metal stock has 109.25 stock levels to 912.50 mark — delivering around 735 per cent return in this period.

However, in the last 5 years, the stock has yielded 2,032.50 per cent as it shot up from 42.79 per stock mark to 912.50 levels in this period. If an investor had invested 1 lakh in this stock 5 years ago and had remained invested in it till date, its 1 lakh would have turned to 21.32 lakh today. So, Rakesh Jhunjhunwala is going to invest around 31 crore in a company that has a history of giving stellar return to its share holders.

The small-cap metal stock is trading at its record high as it made its life-time high of 1008.50 yesterday. The stock was listed at BSE SME exchange on 13th April 2016. The issue price of the IPO was 39. One lot of the IPO comprised 3000 company shares means a bidder had to invest 1.17 lakh for applying to this BSE SME IPO. So, if a successful bidder had remained invested in the company after listing, its 1.17 lakh would have become 27,37,500 [(912.50/39) x 1.17 lakh].

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