CARE plunges as IDBI rejects bids for proposed stake sale

The stock has plunged 10% after the IDBI rejected the bids received from the potential investors as they were not found 'acceptable'.

Shares of Credit Analysis and Research (CARE) has plunged nearly 10% to Rs 776 after the IDBI rejected the bids received from the potential investors as they were not found 'acceptable'.

IDBI has informed the company that a meeting had been held on February 22, 2014 to open and consider the submitted bids. However, no bid was found acceptable to the selling shareholders and all of them have been rejected, CARE said in a BSE filing.

IDBI along with four other shareholders of CARE, together holding more than 45% stake in the rating agency, were in the process of identifying a buyer for a potential sale of 11.1 million shares in the company and the shortlisted bidders had been asked to submit their bids.

Meanwhile, the stock of CARE has rallied 20% in past two week from Rs 718 to Rs 859 on Friday after the IDBI announced its stake sale plan in the company.

Today, the stock opened at Rs 851 and touched a low of Rs 762 on the BSE.  A combined 428,204 shares already changed hands on the counter till 0955 hours against an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.