Credit rating agency Crisil today picked up 8.9 per cent stake in domestic rival CARE Ratings Ltd for a little over Rs 435 crore.
The investment has been made pursuant to a bid process conducted by the Canara Bank, subsequent to their request for quotation issued on June 19, 2017.
"Crisil has purchased 26,22,430 equity shares of CARE representing 8.9 per cent of its equity share capital," Crisil said in a regulatory filing to the stock exchanges.
The shares have been bought on an average price of Rs 1,659.79, valuing the transaction at Rs 435.27 crore, as per block deal data available with the BSE.
"This investment in the equity of CARE has no special rights and is in compliance with applicable rules and regulations," Crisil said.
Crisil also said it 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," it added.
CARE, a Sebi-registered credit rating agency, is owned by various domestic and institutional investors. Crisil is majority owned by S&P Global Inc.
Following the transaction, share of CARE surged 11.79 per cent to close at Rs 1,596.85 on BSE.
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