A New Addition to Rakesh Jhunjhunwala's Portfolio?

For a long time, Syska LED has been a prominent advertiser in the mass media. Syska LED is currently a privately held company, with the promoting Uttamchandani family controlling the business. In a recent development, it emerges that ace investor Rakesh Jhunjhunwala has invested in Syska LED through RARE Enterprises. 

Also Read: Rakesh Jhunjhunwala's Portfolio 

Will Rakesh Jhujhunwala Invest in Syska LED?

While the details of the size of the stake or the deal value are not yet made public, what has emerged is that the term sheet has already been signed between the Uttamchandani family and RARE Enterprises. Rakesh Jhunjhunwala’s flagship has already made 15% of the committed investment and the balance amount is slated to be invested in Syska LED over the next 60-days.

The Uttamchandani family started off as distributors of T-Series Audio cassettes and CDs but subsequently diversified their focus into electronic product categories like LED, Personal Care Appliances, Mobile accessories, home appliances etc. The underlying theme of Syska LED has been to focus on products that are environment friendly and also save electricity bills for the average households in India.

This is one more in the long list of private investments that RARE Enterprises plans to diversify its investment portfolio beyond the realm of listed stocks. It may be recollected that last month, Rakesh Jhunjhunwala had also announced investment in launching an airline company. The association will also help catapult Syska into the next phase of growth.

For Syska LED, this association brings three distinct advantages. Firstly, it gives them the much needed funds and 360 degree expertise for scaling up their business. Secondly, this association would automatically make a number of marquee qualified institutional investors also interested in Syska LED. Above all, this could pave the way for eventual IPO and listing of the company in the coming years.