Don’t miss the latest developments in business and finance.

CARE surges on IDBI Bank and others stake sale plan

IDBI Bank and four other shareholders which together hold a little over 45% shares are in the process of indentifying a buyer to exit from the company.

Image
SI Reporter Mumbai
Last Updated : Feb 13 2014 | 12:32 PM IST
Shares of rating agency Credit Analysis and Research (CARE) has moved higher by 6% to Rs 811 on NSE after the company said that IDBI Bank and four other shareholders which together hold a little over 45% shares are in the process of indentifying a buyer to exit from the company.

IDBI has informed the company that it, and four other shareholders of the company, all of who hold more than 45% shares in the company, are in the process of identifying a buyer for a potential sale of 11.13 million shares in the company, CARE said in a BSE filing.

The Company is apprised that the shortlisted bidders have been asked to submit their bids by February 25, 2014. However, we also understand that the sellers have reserved the right to modify or abort the sale process at any stage and that the sale is subject to execution of a mutually agreed contract and to necessary approvals, it added.

As on December 31, 2013, IDBI Bank held 16.69% stake in CARE, followed by Canara Bank (13.25%), State Bank of India (6.31%) and Federal Bank (3.9%). IL & FS Financial Services and Bajaj Holdings & Investment have held 6% stake each in rating agency, data shows.

Meanwhile, the board has given its consent for increasing the limit of investment by Foreign Institutional Investors (FIIs) including their sub-accounts in the shares or convertible debentures of the company by subscription or acquisition up to 74% of the paid up equity share capital or paid up value of each series of convertible debentures of the company as may be applicable, CARE said.

The stock opened at Rs 773 and touched a low of Rs 748 on the NSE. A combined around 296,000 shares changed hands on the counter till 1215 hours against an average sub 75,000 shares that were traded daily in past two weeks on the BSE and NSE.
 

Also Read

First Published: Feb 13 2014 | 12:28 PM IST

Next Story