The Hindu Business Line : Rakesh Jhunjhunwala picks 5% in Mid-Day from promoters

STOCK market investor Mr Rakesh Jhunjhunwala has picked up more than five per cent stake in media company Mid-Day Multimedia Ltd. He acquired the stake today through market purchases. Promoters of Mid-Day sold the shares.

On the decision to buy the shares of the media company, Mr Jhunjhunwala said: "I think it is a good investment". He declined to give more reasons for the purchase.

A Mid-day official said the promoters' offloaded shares to raise money for personal reasons. Promoters may buy back shares later.

There is no concerted plan on the part of the promoters, the Ansari family, to offload their holding, the official said.

Mr Jhunjhunwala is known in the stock market for picking large stake in companies that have good fundamentals.

Some of his other big investment includes rating firm Crisil, engineering company Praj Industries, Bharat Earth Movers Ltd, Pantaloon Retail and Titan Industries.

Mr Jhunjhunwala picked 22.5 lakh shares at Rs 50.07 on the BSE and the total value of the transaction is Rs 11.26 crore. This works out to 5.28 per cent of the company's equity.

At close, Mid-Day stock gained 20 per cent at Rs 58.85 on the BSE with total volumes of 29.33 lakh shares; on the NSE, it closed at Rs 58.95, up 19 per cent, with volumes, of 9.86 lakh shares

Various promoters of the company have sold these shares. The sellers include Khalid Ansari, Rukya Ansari, Tarique Ansari, Tehzeeb A Grossman and Sharique Ansari.

Each of them sold 4.5 lakh shares respectively, the company said in a notice to the stock exchanges today.

Recently, Bennett & Coleman Ltd, the company which owns Times of India and other newspapers, had picked around seven per cent stake in the company.

The company publishes Mumbai's leading eveninger Mid-Day and other newspapers and has an interest in FM radio and outdoor advertising.

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