Indiabulls Ventures rallies over 150% in 3 months; stock nears 52-week high

The stock rallied 13% to Rs 229 in intra-day trade on Thursday and has zoomed 151% in the past three months, as compared to 13% rise in the S&P BSE Sensex

Shares of Indiabulls Ventures rallied 13 per cent to Rs 229 on the BSE in intra-day trade on Thursday on heavy volumes. The stock of financial services company was trading close to its 52-week high level of Rs 229.80 touched on February 24, 2020.

The company on Wednesday reported a consolidated net profit of Rs 12.42 crore for the quarter ended June 2020, as against profit of Rs 122 crore in year ago quarter. It had reported a consolidated net loss of Rs 319 crore in previous quarter.

At 03:11 pm; Indiabulls Ventures was trading 9 per cent higher at Rs 223, as compared to 1.6 per cent gain in the S&P BSE Sensex. The trading volume nearly doubled on Thursday with a combined 3.2 million equity shares changing hands on the NSE and BSE. In the past three months, the stock has zoomed 151 per cent, as compared to 13 per cent rise in the S&P BSE Sensex.

The board of directors of the company in their meeting held on August 28, 2020 had approved to raise Rs 588 crore through a preferential share sale to a clutch of investors led by American fintech investor Ribbit Capital.

Indiabulls Ventures will issue 33.6 million shares, representing about 5.5 per cent shareholding, to six investors including units of Ribbit Capital and NWI Management at Rs 175 per share, according to a stock exchange filing. Inteligo Bank, First Royalty Ventures, TIMF Holdings and Think India Opportunities Master Fund are the other investors who are likely to buy shares in the preferential issue, reports suggest.