CARE advances on securing board nod for preferential issue

Credit Analysis and Research gained 3.6% to Rs 545 at 15:18 IST on BSE after the company said its board has given its consent to create, issue, offer, and allot, on a preferential basis to Ascent India Fund III.

Meanwhile, the BSE Sensex was up 363.64 points, or 2.02%, to 18,359.79

On BSE, 3,307 shares were traded in the counter compared with average volume of 4,570 shares over the past two weeks.

The stock hit a high of Rs 547.90 and a low of Rs 523 so far during the day. The stock had hit a record high of Rs 986.20 on 26 December 2012. The stock had hit a record low of Rs 415.05 on 2 August 2013.

The stock had outperformed the market over the past one month till 28 August 2013, sliding 4.49% compared with the Sensex's 8.87% fall. The scrip, however, underperformed the market in past one quarter, declining 24.55% as against Sensex's 10.74% fall.

The small-cap company has an equity capital of Rs 28.55 crore. Face value per share is Rs 10.

Credit Analysis and Research (CARE) during market hours today, 29 August 2013 said its board has given its consent to create, issue, offer, and allot, on a preferential basis, an aggregate of 4.46 lakh equity shares at Rs 560.15 per share aggregating Rs 25 crore to Ascent India Fund III managed by Ascent Capital Advisors India. The company is undertaking the issue in order to comply with the minimum capitalisation norms of $0.5 million applicable to non-fund based non banking finance companies as required by the Reserve Bank of India (RBI) in connection with the initial public offer of the company undertaken in December 2012. CARE said that the RBI has already extended the date of compliance with the minimum capitalization requirement by the company from 9 June 2013 to 30 September 2013.

CARE reported 44.6% rise in net profit to Rs 24.30 crore on 39.7% growth in total income to Rs 50.29 crore in Q1 June 2013 over Q1 June 2012.

CARE is the second largest rating company in India by rating turnover. The company's main product is rating of debt instruments and bank loan facilities. Apart from rating, the company also provides specialized grading services including IPO grading, equity grading and grading various types of enterprises including energy service companies, renewable energy service companies, shipyards, maritime training institutes, construction companies, rating of real estate projects etc.

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