One of the most prominent sources of investment in India has been permanently extinguished.
This morning, legendary investor Rakesh Jhunhunwala passed away. He has been facing a number of health issues since he was 62 years old. Jhunjhunwala, affectionately known as the “Big Bull,” was one of India’s most well-known investors and a major supporter of the country’s development. He was the 36th richest person in India at the time of his passing, with a net worth of $5.5 billion.
Jhunjhunwala’s past didn’t offer much evidence that he would one day become a multi-billionaire in the stock market. Jhunjhunwala was born on July 5, 1960, when communist policies were still in place in India and stock market investment wasn’t particularly viewed as a realistic career path. Young Jhunjhunwala enrolled at Sydenham College to study business; his father was an income tax official.
But Jhunjhunwala became interested in investment after hearing his father talk about stocks with his buddies when he used to participate in the stock market. His father used to instruct Jhunjhunwala to read newspapers frequently because the news was what caused the stock market to fluctuate. He was urged by his father to invest in the markets, but he refused to help him financially and even prevented him from approaching acquaintances for assistance. Unfazed, Jhunjhunwala borrowed money from his father’s clients, promising to repay it with returns greater than those offered by fixed deposits.
After receiving his diploma from the Institute of Chartered Accountants of India in 1985, Jhunjhunwala made the bold decision to enter Dalal Street with an initial investment of Rs. 5,000. Jhunjhunwala experienced success early on; one of his first significant gains included Tata Tea, in which he had invested 5,000 shares at a price of Rs. 43; three months later, the stock had risen to Rs. 143. Jhunhunwala invested Rs. 20–25 lakh during the following three years, and saw good returns in stocks like Praj Industries and Sesa Goa.
Jhunjhunwala’s career in investment matured in 1991, the same year that the Indian economy began to open up. He became an early investor in stocks like Titan, CRISIL, Aurobindo Pharma, and NCC when India’s economy started to expand. In addition to being an active investor, Jhunjhunwala served as Chairman of the boards of several firms, including Geojit Financial Services, Prime Focus, Mid Day, Viceroy Hotels, and Hungama, a company that provides entertainment.
Rakesh Jhunjhunwala gained notoriety in the greater investing world as a result of his entertaining TV appearances and interviews, in which he was refreshingly honest and forthright about his investing viewpoint and philosophy. Jhunjhunwala was never afraid to express his opinions and rose to prominence as one of the leading proponents of India’s growth narrative, consistently stating that the country’s economy was set to boom.
India ended up having the fastest-growing economy in the world, and Jhunjhunwala’s stock picks performed quite well. Jhunjhunwala’s net wealth was $5.5 billion as of 2021. (Rs.40,000 crore). As part of his charitable initiatives, he said that he would donate 25% of his money to charity. In Navi Mumbai, he was constructing an eye hospital that will provide 15,000 free eye procedures annually. Jhunjhunwala also gave to organisations like Olympic Gold Quest, which supports Indian sportsmen and helps them win gold in international tournaments, Ashoka University, Friends of Tribals Society, and homes for kids with cancer.
But Jhunjhunwala wasn’t quite done yet; he said last year that he would launch Akasa Air, a low-cost airline. Jet Airways, Deccan Airways, and Kingfisher are just a few of the airlines that have folded in India over the past few decades. However, Jhunjhunwala took a risk and put a significant amount of his own money into starting the new airline.
Jhunjhunwala’s aviation ambition finally came true last week when Akasa Airways operated its inaugural flight with him on board. Though Jhunjhunwala won’t be alive to witness Akasa Air’s expansion in the upcoming years, India’s vistas will continue to be illuminated by his contributions to Dalal Street, his humour, and his unmatched investing knowledge.
