Federal Bank jumps on stake-buy in Equirus

Federal Bank rose 4.12% to Rs 93.60 at 9:48 IST on BSE after the bank said its board approved buying 26% stake in Equirus Capital.

The announcement was made after market hours yesterday, 22 February 2018.

Meanwhile, the S&P BSE Sensex was up 120.37 points, or 0.36% to 33,939.87.

On the BSE, 3.03 lakh shares were traded in the counter so far compared with average daily volumes of 14.03 lakh shares in the past one quarter. The stock had hit a high of Rs 94.15 and a low of Rs 92.50 so far during the day. The stock hit a record high of Rs 127.75 on 17 October 2017. The stock hit a 52-week low of Rs 82.50 on 27 February 2017.

The stock had underperformed the market over the past 30 days till 22 February 2018, falling 12.89% compared with 6.48% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 19.88% as against Sensex's 0.42% rise. The scrip had also underperformed the market in past one year, rising 6.96% as against Sensex's 17.05% rise.

The large-cap company has equity capital of Rs 393.83 crore. Face value per share is Rs 2.

Federal Bank said its board approved acquisition of up to 26% of the paid-up equity share capital of Equirus Capital (ECPL), a financial services company, subject to statutory and regulatory approvals and satisfactory completion of the financial and legal due diligence.

Federal Bank's net profit rose 26.43% to Rs 260.01 crore on 6.77% growth in total income to Rs 2729.83 crore in Q3 December 2017 over Q3 December 2016.

Federal Bank is a commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different states in India.

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