CRISIL buys 8.8% stake in CARE Ratings1 min read . Updated: 29 Jun 2017, 04:32 PM IST
As of March 2017, Canara Bank held 8.9% stake and with this stake sale, it holds now 0.1% stake or 28,984 shares of CARE Ratings
New Delhi: CRISIL Ltd on Thursday said it bought 26.22 lakh shares or 8.82% stake in CARE Ratings Ltd in a block deal from Canara Bank.
“The investment has been made pursuant to a bid process conducted by Canara Bank, subsequent to their request for quotation issued on June 19. This investment in the equity of CARE has no special rights and is in compliance with applicable rules and regulations," CRISIL said in a notice to the BSE.
As of March 2017, Canara Bank held 8.9% stake in the company and with this stake sale it holds now 0.1% stake or 28984 shares.
Shares of CARE surged as much as 16.8%, its maximum gain since its listing day, and touched a high of Rs1,668.65 apiece—a level last seen on 3 April. The stock got listed in December 2012. CARE closed at Rs1,596.85 on the BSE, up 11.8% from its previous close.
Earlier, Suresh Pai, treasury head at Canara Bank, confirmed in a conversation with CNBC TV that the bank has sold its entire stake in the company and raised around Rs400 crore.
Canara Bank rose 2.1% to Rs332, while CRISIL rose 1.5% to Rs1,949.65. India’s benchmark Sensex index rose 0.08% to closed at 30,857.52 points.
“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," the report added.