Srei Infrastructure Finance lost 3.58% to Rs 18.85 at 12:27 IST on BSE after the company announced a hike in its benchmark rate by 50 basis points to 18% from 17.5% per annum effective from 1 September 2013.
The announcement was made during trading hours today, 27 August 2013.
Meanwhile, the S&P BSE Sensex was down 480.58 points or 2.59% at 18,077.55.
On BSE, 19,000 shares were traded in the counter as against average daily volume of 1.10 lakh shares over the past one quarter.
The stock hit a high of Rs 19.50 and a low of Rs 18.85 so far during the day. The stock had hit a 52-week low of Rs 17.60 on 25 July 2013. The stock had hit a 52-week high of Rs 51.50 on 7 January 2013.
The stock outperformed the market over the past one month till 26 August 2013, jumping 5.11% compared with the Sensex's 6.03% fall. The scrip had, however, underperformed the market in past one quarter, declining 24.81% as against Sensex's 5.82% fall.
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The infrastructure financing firm has equity capital of Rs 503.09 crore. Face value per share is Rs 10.
Srei Infrastructure Finance said that the company's asset liability management committee met and after reviewing the cost of borrowing, decided to increase its benchmark rate. Srei had last increased its SBR in September 2011 by 75 basis points.
Bijoy Daga, CEO, Srei Infrastructure Finance said, "This interest rate increase comes at a time when the cost of funds have increased for the infrastructure sector. This pressure is expected to continue as long as our monetary policy remains tight due to the overall macro-economic scenario and rupee depreciation. We hope that the Government makes a concerted effort to check the fall in rupee."
Srei Infrastructure Finance's consolidated net profit jumped 171.1% to Rs 47.22 crore on 3.3% growth in total income to Rs 786.67 crore in Q1 June 2013 over Q1 June 2012.
Srei Infrastructure Finance delivers innovative solutions in infrastructure space. The company's businesses include infrastructure project finance, advisory and development, infrastructure equipment finance, venture capital, capital market and insurance broking.
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