CARE jumps after RBI OKs hiking FII stake limit

Credit Analysis & Research jumped 1.87% to Rs 820 at 9:47 IST on BSE after the Reserve Bank of India allowed foreign institutional investors to purchase up to 74% of the paid-up capital of the company.

Meanwhile, the BSE Sensex was up 122.13 points, or 0.54%, to 22,567.25.

On BSE, so far 14,000 shares were traded in the counter, compared with an average volume of 35,187 shares in the past one quarter.

The stock hit a high of Rs 850 and a low of Rs 818 so far during the day. The stock hit a 52-week high of Rs 874.90 on 21 February 2014. The stock hit a 52-week low of Rs 415.05 on 2 August 2013.

The stock had outperformed the market over the past one month till 5 May 2014, rising 3.82% compared with the Sensex's 0.38% rise. The scrip had, however, underperformed the market in past one quarter, rising 9.32% as against Sensex's 10.78% rise.

The small-cap company has an equity capital of Rs 29 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) on Monday, 5 May 2014, notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 74% of the paid up capital of Credit Analysis & Research (CARE) under the Portfolio Investment Scheme (PIS). CARE has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs, RBI said in a statement.

FIIs held 15.66% stake in CARE (as per the shareholding patterns as on 31 March 2013).

Net profit of CARE rose 0.72% to Rs 28.02 crore on 18.15% rise in net sales to Rs 53.84 crore in Q3 December 2013 over Q3 December 2012.

CARE provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. CARE has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO gradings.

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