Repco Home zooms 42% in three days after HDFC MF buys 2% stake

The stock moved higher by 11 per cent to Rs 475 on Wednesday

The shares of Repco Home Finance climbed 11 per cent to Rs 475 in intra-day trading on Wednesday, thus surging 42 per cent in past three trading sessions after HDFC Mutual Fund (MF) bought 2 percentage point stake in the housing finance company through open market.

On February 28, 2019, HDFC MF acquired 1.25 million equity shares, representing 2.01 per cent stake, in Repco Home Finance through various schemes. The total acquisition value would be Rs 42 crore (approx), based on the closing price of Rs 334 per share on the BSE.

“There has been an increase in the holding in the company by the schemes of HDFC MF by 2.01 per cent as of February 28, 2019. As on February 28, 2019, the aggregate holding of the schemes of HDFC MF in the company is 7.04 per cent of the paid-up equity share capital of the company,” Repco Home Finance said in a regulatory filing.

As on January 8, 2019, the aggregate holding of the schemes of HDFC MF in Repco Home Finance was 5.03 per cent of the paid-up equity share capital of the company, it added.

On January 8, HDFC MF had purchased 139,000 shares of Repco Home Finance, according to an exchange filing. The mutual fund held 4.24 per cent stake in the company at the end of December 2018 quarter.

In the past six weeks, the stock of Repco Home Finance had underperformed as compared to the market by falling 25 per cent, as compared to 1 per cent decline in the S&P BSE Sensex till Thursday, February 28.

At 02:05 pm, Repco Home Finance was trading 8 per cent higher at Rs 462 on the BSE. In comparison, the benchmark index up 0.29 per cent at 36,547 points. A combined 7.02 million equity shares changed hands on the counter on the NSE and BSE so far.