Mukesh Ambani / Aditya Puri / Shibulal – All are selling shares of their companies when the Market is moving up. Do they know something?

29^th July 2020

Mukesh Ambani / Aditya Puri / Shibulal – All are selling shares of their companies when the market is moving up. Do they know something?

Dear Fellow Travelers,

Namaste dear reader! Some unusual transactions have taken place in the last 4 months.

1.    Mukesh Ambani sold 30% of his company to various companies or investors and created a corpus to pay back his loans and to expand his business (apparent reason known to the public).

2.    Mr. Puri is retiring from the bank which he created in the last 25 years. He sold Rs.800 Crs. worth of shares. Ideally, he should have kept the share since his bank is considered the most stable bank. Why he sold? We don’t know any apparent reason.

3.    Shibulal, ex Md of Infosys, sold Rs.800 Crs. shares of Infosys. Apparent reasons given by his family office is for investments and philanthropic activities.

The questions in Media are why they sold? Do they see MANDI or some other negative events in the coming future?

Let us deal with them.

Mukesh Ambani: - There is no doubt that he knows many things that as a small investor we may never come to know in our lifetime. Foreign companies and investor have appreciated his OWNER MANAGED company style and this is among the chief reason that he has attracted a lot of investors.

If the share prices go up – he will be the best beneficiary and if goes down he will be the worst loser. In March only his shares were traded at Rs. 900. He lost his 10^th richest position and now he has gained the position to 5^th number or maybe 4^th richest in world rankings.

If his shares are going to go down – which can go down – depending on the market and global situations – he will suffer his ranking. However, if some cheating comes out for selling his shares – he will lose his goodwill and the name he has so painstakingly created. I am sure he will not RISK that at any cost. The most interesting thing is that he is still holding 51% something. It means he sold the shares but his shareholding percentage is not reduced. Ideally, if some bad events are going to happen – he should reduce his shareholding now and buy back later.

My thought process says that thanks to COVID-19, there is a situation of MANDI in the Market. Many business models are changing drastically. He was also taken by a surprise by COVID and the fall in his share prices. But he took fast action and created a CASH Balance so that he can take advantage of buying businesses he thinks is of good value in the future. There are media reports that he is buying Future Group for Rs.27000 Crs.

So, his selling stake in JIO has the strategic value as per my understanding.

Mr. Aditya Puri: -

One person who has the best knowledge of India’s real economy is Mr.Puri. He has worked at the ground levels and he knows the pulse of the Indian economy like nobody else. I have always found his ideas and suggestions better than the best economist in India. He surely knows the budding investment opportunities in DIGITAL India. I am sure he will invest his money into some promising business.

He was the best leader HDFC bank has ever got. He is retiring and he may want to invest in some start-up or may want to stay away from the corporate world. He has high regard for a dashing MD of another small bank. He may invest in that bank. Who knows?

He has created a BANK and if something bad comes out after his retirement – he may have made the money – but his name will get spoiled. Looking at this track record – I don’t think he will take any such step.

Mr. Shibulal: - He was also a promoter MD of the company. He has retired a long back and he wants to use this money for investment and philanthropy as per his family office.

Infosys had seen the worst time under Mr. Sikka. He did not sell at that time. It was the right moment as they share languished for a long time. Many people started to think that the golden days of Infosys are over. But see the company has come back.

Mr. Shibulal is entrepreneur and he would also have seen some great opportunities for investing in some business. I am sure we will get some news about his new venture sooner than later.

What is my personal call?

Way back in September 2012, I have predicated India will see the best growth between 2014 to 2032. We got the dynamic PM like Modi Ji in 2014 and we are moving towards our top.

I have also talked about SATURN / JUPITER and RAHU movement in the last 6- 9 months and we are seeing the effects word to word as predicted in those posts.

You need to invest your time to read all of the above in our BLOG, to gain the total picture.

I see a STRONG CASE of investing their money in upcoming businesses. Mukesh Bhai is already doing it. For the other two, we will come to know shortly. Buffett has also said – CASH is KING in times of CRISIS.

If you want to make tons of money – invest in India. Make India as your chosen destination for the coming 10 years. You will bless me. If you need help in Investing – you can approach us.

Have a great time.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

 

Live With Passion…Invest With Passion. 

 

Hitesh Parikh.