Hyderabad: A day after the market frenzy created by a namesake Rakesh Jhunjhunwala buying shares of Hyderabad-based Surana Solar, the scrip on Thursday crashed 20 per cent hitting lower circuit breaker.
On Wednesday, the stock rose by nearly 18 per cent after data from the NSE showed Rakesh Jhunjhunwala, who later turned out be his namesake, had bought 256,500 shares of Surana Solar for Rs1.37 crore at an average price of Rs 53.74. After sometime, Mr Jhunjhunwala denied buying any stake in the company. “I don't own even a single share (in Surana Solar),” he told Reuters.
Following the denial, the stock fell by 13 per cent on Wednesday. It crashed by 20 per cent on Thursday, leading to suspension of trading in the stock for the day. Known as Big Bull in the investor community, Rakesh Jhunjhun-wala is followed by thousands of small investors, who bet on the stocks that he invests in. Reacting to the development, Surana Solar said it is a needless distraction for him as he would answer Sebi and exchanges.
According to CNBC-TV18, the namesake Jhunjhunwala is from Kolkata. The facts that he had opened his demat acc-ount just a month ago and that the bulk deal in Surana Solar was brokered by Rajkot-based Sun Flower Broking raise suspicion about the transaction.
