IIFL Securities hits 5% upper circuit as Rakesh Jhunjhunwala buys stake

On Thursday, Rakesh Jhunjhunwala's RARE Enterprises purchased 2.78 million equity shares, representing 0.87 per cent stake, for Rs 11.92 crore in a bulk deal on BSE.

Shares of IIFL Securities were locked in 5 per cent upper circuit for the third straight day at Rs 47.15 on the BSE on Friday after ace investor Rakesh Jhunjhunwala bought nearly one percentage point stake in the financial services firm via open market.

On Thursday, January 2, 2020, Rakesh Jhunjhunwala's RARE Enterprises purchased 2.78 million equity shares representing 0.87 per cent stake for Rs 11.92 crore in a bulk deal on BSE. The shares were bought at a price of Rs 42.83 per share.

Other investor Satpal Khattar had sold 3 million shares at an average price of Rs 42.74 per share, the exchange data shows. As per th September 2019 shareholding pattern, Satpal Khattar held 6.21 million, or 1.95 per cent stake, in IIFL Securities.

The retail and institutional broking house was listed on the bourses in September last year, after getting demerged from its parent IIFL Holdings.

The stock was trading near its all-time high level of Rs 47.70, touched on September 25, 2019. In the past four days, the stock has rallied 21 per cent, as compared to an unchanged benchmark S&P BSE Sensex. With today’s gain, the company's share price has more than doubled from the level of Rs 19.10, hit on October 15.

Till 11:27 am, a combined 22,306 equity shares had changed hands on the counter and there were pending buy orders for 2.5 million shares on the NSE and BSE, exchange data shows.