Money Nov 24, 2011
New Delhi: Even the Big B could not protect himself from the slippery and unpredictable stock markets, as the mega star, who invests in small and mid-sized firms, is hit by trimmed valuations of shares he owns.
As per the data available with the Bombay Stock Exchange, actor Amitabh Bachchan holds stakes between 1-3 percent in at least three listed companies - Neuland Laboratories, Birla Pacific Medspa and Fineotex Chemical.
The total market value of Neuland Labs stands at about Rs 40 crore, while that of Birla Pacific Medspa and Fineotex are Rs 122 crore and Rs 100 crore respectively.
Out of these, he has been holding Neuland shares since the last quarter of 2010, while he has purchased shares of the other two companies in the past four months.
His name appears as Amitabh Harivansh Rai Bachchan on the shareholder lists of these companies. Queries sent to him regarding these stock purchases remained unanswered.
A broker said that the filmstar might have invested in shares of large companies as well, but those holdings could be below 1 percent, and therefore, have not been disclosed by stock exchanges.
The listed companies are required to disclose their shareholders having one percent or above stake at the end of every quarter.
Bachchan had earlier dabbled into the corporate world by setting up his much talked-about ABCL (Amitabh Bachchan Corp. Ltd) to produce films and other entertainment related activities. The venture was later renamed AB Corp.
Also, the asset and liabilities affidavit filed by his wife Jaya Bachchan as a Rajya Sabha member in 2009 reportedly disclosed investments worth about Rs 122 crore in companies by Amitabh and about Rs 3 crore by Jaya herself.
The latest purchase, as per data available with the BSE, was of 80,000 Fineotex shares for about Rs 1.2 crore on 17 November. Prior to that, he also purchased 90,000 and 110,000 shares of the same company on 14 and 15 November, respectively.
Bachchan purchased a total of 2.8 lakh shares of Fineotex on these three days for about Rs 4.6 crore.
At the current market price, these Fineotex shares are worth about Rs 2.5 crore and account for a 2.5 percent stake in the company.
Fineotex shares today fell by 10 percent to Rs 87.70. They had scaled a 52-week high of Rs 353 on June 28, 2011.
In another recent investment, Bachchan also holds 16 lakh shares, or a 1.43 percent stake, in the newly-listed Birla Pacific Medspa. The BSE data shows that Bachchan purchased 10 lakh shares of this company on 9 August 2010 for Rs 1.85 crore.
At the current market price, his entire holding of 16 lakh Birla Pacific Medspa shares is worth Rs 1.74 crore. It could not be ascertained that when the remaining 600,000 shares were purchased by him.
Birla Pacific Medspa shares today fell 4.8 percent to Rs 10.90 at the BSE today.
Besides, Bachchan also holds 1.71 percent stake or 92,530 shares of Neuland Lab, as per the latest quarterly shareholding data available with the BSE as on 30 September.
The stake held by Bachchan in the company stood at 1.49 percent at the end of October-December 2010 quarter, while his name did not figure on the list of shareholders prior to that quarter.
At the current market price, Bachchan's 1.49 percent holding in Neuland is worth about Rs 70 lakh, down from over Rs 1 crore at the end of last fiscal, ended 31 March 2011.
Neuland shares, however, today soared 10.71 percent higher to Rs 77.55.
Previously, Bachchan had also held shares in another listed company, Energy Development Company Ltd, whose promoters included his friend and political leader Amar Singh.
Bachchan had held the 10 lakh shares of this company initially as a promoter shareholder till December 2005, and later as a public shareholder. At the end of June 2009, Bachchan's 10 lakh shares were equivalent to a 3.64 percent stake in this company.
However, these shares seems to have been sold by him, as his name no longer exists on the list of shareholders filed by the company with the BSE.
More From R Jagannathan.