The Inspiring Journey of Rakesh Jhunjhunwala: A Legend in Indian Investment
Rakesh Jhunjhunwala, a legendary name in the Indian stock market, built a net worth of over 40,000 crores (billions of rupees) within just 35 years. His journey from a young stock market enthusiast with 5,000 Rupees to a billionaire trader and investor is a testament to his astute financial acumen and relentless spirit. This article delves into the fascinating story of how he became one of the most influential figures in Indian investments.
The Beginning
In the year 1985, Rakesh Jhunjhunwala, a young man from Mumbai, embarked on his venture into the stock market. His father, an income tax officer, frequently discussed investments with his friends, which had a profound impact on young Rakesh. After completing his Chartered Accountant (CA) course, he decided to invest with his own savings of 5,000 Rupees, without borrowing any money from his father. This marked the beginning of an extraordinary journey.
Entry at 25
At the age of 25, with 5,000 Rupees in hand, Rakesh entered the market when the SP BSE Sensex was at 150 points. For context, the Sensex is now close to 60,000 points. His journey was filled with challenges and opportunities, but his perseverance paid off. One of his earliest investments was in Tata Tea where he bought 5,000 shares at 43 Rupees per share. In just three months, the stock price rose to 143 Rupees, yielding a profit of 75 lakhs (hundreds of thousands of Rupees) in 1986. Over the next three years, his wealth grew significantly, thanks to investments in companies like Sesa Goa, which is now called Vedanta Ltd.
Scam 1992
During the Harshad Mehta scam of 1992, Rakesh Jhunjhunwala, known as the "Big Bull," participated in a bear cartel, betting on the decline of companies. This decision led to substantial gains for him and his partners, such as Manu Manek and Dmarts Radhakrishnan Damani. His reputation was further solidified after this event.
The Biggest Investment
In 2002, Rakesh made one of his most profitable investments – Titan Company Ltd. He purchased 6 crore shares at 3-4 Rupees per share. Today, the share price stands at over 2,400 Rupees, making his investment in Titan worth over 9,000 crores. This significant investment was a turning point in his career and further cemented his position as one of the most successful investors in India.
More Than an Investor
Beyond just investing, Rakesh Jhunjhunwala was a driving force behind numerous successful companies, including Lupin, NCC, CRISIL, Praj Industries, and Aurobindo Pharma. He also served as the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd. In addition to his business ventures, Rakesh was involved in the film industry, producing movies like 'English Vinglish,' 'Shamitabh,' and 'Ki Ka.'
RARE Enterprises and Akasa Air
Rakesh managed his investments through RARE Enterprises, named after his wife Rekha and himself. Recently, he launched Akasa Air, a low-cost and quality airline to serve the Indian market effectively. This venture underscores his commitment to supporting the growth and development of various sectors in India.
Tragically, Rakesh Jhunjhunwala passed away, leaving behind a legacy of inspiration. His investments in India, fueled by a belief in the nation's growth, have encouraged many to pursue careers in stock market investing. Rakesh Jhunjhunwala's story is a reminder of the power of perseverance and strategic investment.
By: Vivek