INDORE: High net worth investor and proprietary trader Rakesh Jhunjhunwala is set to pick up a 24% stake in the Baroda-based Sayaji Hotels Ltd for a consideration of Rs 20 crore.
Sajid Dhanani, managing director of Sayaji Hotels Ltd, told DNA Money that the company will make a private placement of shares to Jhunjhunwala at Rs 50 per share, which includes a premium of Rs 40 per share.
“Recently, we signed an agreement with him, and we have convened an extraordinary general meeting on February 15 to get shareholder approval for the private placement,” Dhanani said.
Jhunjhunwala told DNA Money he would speak only on Friday.
The market, however, seems to have got a whiff of the news a month back, going by the spurt in Sayaji Hotel’s stock price. Its share price has shot up by 76% in a month’s time, from Rs 48 on January 2 to Rs 84 on Thursday. It touched a new all-time high of Rs 89.95 intra-day on Thursday.
Dhanani said an expansion plan, involving an investment of around Rs 114 crore, has been chalked out.
