Aptech tumbles on buzz Sebi probes Rakesh Jhunjhunwala for insider trading

Aptech fell 6.31% to Rs 162.45 after the media reported that billionaire investor Rakesh Jhunjhunwala is being probed by Sebi for alleged insider trading in the shares of Aptech.

Media reports suggest that Mumbai-based billionaire investor, Rakesh Jhunjhunwala is being probed by Securities and Exchange Board of India (Sebi) on account of insider trading in the company. Other board members including Ramesh Damani and Madhu Jayakumar are also being examined on the same, reports added.

Aptech is the only company in Jhunjhunwala's portfolio in which he has management control. He is a passive shareholder in the other companies.

As per the Aptech shareholding pattern, Rakesh Radheshyam Jhunjhunwala held 12.76%, Rekha Rakesh Jhunjhunwala held 11.46% stake, Rajeshkumar Radheshyam Jhunjhunwala held 0.62% stake and Rare Equity held 21.16% stake as on 31 December 2019.

On the technical front, the stock's RSI (relative strength index) stood at 42.491. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading in between its 50-day moving average (DMA) placed at Rs 163.93 (which will act as a support in the near term) and 100 DMA placed at Rs 159.12 (which would act as a resistance during the upcoming trading sessions).

On a consolidated basis, Aptech's net profit rose 33.3% to Rs 10.97 crore on a 41.2% surge in net sales to Rs 71.52 crore in Q2 September 2019 over Q2 September 2018.

Aptech's business segments are categorized as individual training and enterprise business.

The firm will announce its Q3 earnings on 29 January 2020.

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