CARE Ratings jumped 9.52% to Rs 1,564.50 at 13:45 IST after CRISIL said that it has acquired 26.22 lakh equity shares or 8.9% of the total paid up equity share capital of the company from Canara Bank.
CRISIL made the announcement during market hours today, 29 June 2017.Shares of CRISIL rose 1.57% to Rs 1,950.05.
Meanwhile, the S&P BSE Sensex was up 146.99 points or 0.48% at 30,981.31. The S&P BSE Mid-Cap index was up 89.29 points or 0.62% at 14,591.98.
Huge volumes were witnessed on the counter. On the BSE, 27.73 lakh shares were traded in the counter of CARE Ratings so far as against average daily volume of 10,683 shares in the past one quarter. The stock had hit a high of Rs 1,660 and a low of Rs 1,429 so far during the day. The stock had hit a 52-week high of Rs 1,694.95 on 3 April 2017. The stock had hit a 52-week low of Rs 962.50 on 26 July 2016.
The stock had underperformed the market over the past one month till 28 June 2017, falling 2.03% compared with 0.62% fall in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 4.94% as against Sensex's 4.84% gains. The scrip, had, however, outperformed the market in past one year, jumping 44.32% as against Sensex's 16.25% gains.
The mid-cap company has equity capital of Rs 29.45 crore. Face value per share is Rs 10.
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CRISIL said that it has acquired 26.22 lakh equity shares or 8.9% of the total paid up equity share capital of the company at Rs 1,659.79 per share today, 29 June 2017.
The investment has been made pursuant to a bid process conducted by Canara Bank, subsequent to their request for quotation issued on 19 June 2017. Canara Bank held 8.9% stake in the firm as at 31 March 2017.
This investment in the equity of CARE has no special rights and is in compliance with applicable rules and regulations.
CRISIL continuously evaluates investment options as a part of its corporate strategy. This stake purchase is an investment in the excellent long term prospects of the credit rating sector in the country. The prospects for the sector are driven by the significant demand for capital investments and infrastructure financing in India over the long term, much of which should benefit the sector, CRISIL said.
CARE Ratings' net profit rose 8.2% to Rs 38.45 crore on 1.5% rise in net sales to Rs 76.38 crore in Q4 March 2017 over Q4 March 2016.
CARE Ratings is a credit rating agency in India. CARE provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations.
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