NEW DELHI: With ace investor and entrepreneur Rakesh Jhujhunwala passing away recently, there is understandable curiosity on whether and how his wealth totalling around $6 billion would be properly managed.
Jhunjhunwala’s children are very young and at present aren’t involved in the family-owned trading business, unlike in the case of Ambanis and the Bajajs. But his wife Rekha Jhunjhunwala is an active investor herself. She has an equity portfolio worth Rs 9,800 crore across different sectors. The couple has three children daughter Nishtha born in 2004 and twin sons Aryaman and Aryaveer born in 2009.
If industry insiders are to be believed, Jhunjhunwala, who has a portfolio of over 30 listed stocks worth over Rs 30,000 crore, had already arranged to ensure his estate, including shares and property, will be handed down smoothly to his wife and the three children.
He is said to have named Rekha, her brother Rajeev Gupta, his nephew Vishal Gupta and his close confidante Berjis Desai, a senior lawyer and ex-managing partner of J Sagar Associates, in his will as executors of his estate. This exercise was done well in advance as he was aware of his deteriorating health. It is also said that the Big Bull and his wife created three trusts — on in the name of each child.
Jhunjhunwala’s firm Rare Enterprises will continue to be managed by his long-term lieutenants Utpal Seth and Amit Goela, while Rekha will take a larger role in the company’s management. Some reports suggest his close friend and mentor Radhakishan Damani, a fellow billionaire-investor and founder of DMart, would act as the head of the trust that will be managing Jhunjhunwala’s wealth.
Beside Damani, Jhunjhunwala’s two other close confidantes Kalpraj Dharamshi and Amal Parikh are saidsovereign wealth fund to be members of the group that would manage the late billionaire’s holding. Apart from his equity holdings in listed entities, Jhunjhnwala also held significant stake in many unlisted firms like the 40% stake in newly launched airline Akasa.
His other significant properties include a sea-facing building in Mumbai’s Malabar Hill, which he had bought for `176 crore in 2013 from Standard Chartered Bank and a lavish holiday home in Lonavala.
As far as the legal aspects are concerned, advocate Anandaday Misshra, founder and managing partner of AMLEGALS, said the shares and stocks held in the name of Jhunjhunwala or his company would be transmitted to the nominees declared by him, by submitting a death certificate attested by a Notary or Gazetted Officer.
“Once such transmission of shares is registered, the recipient becomes the shareholder of that company by virtue of transmission and would be entitled to all rights and subject to all liabilities of such shareholder,” said Misshra.