Indiabulls Ventures spurts after getting RBI nod for ARC biz

Indiabulls Ventures hit 5% upper circuit at Rs 137.80 at 11:00 IST on BSE after the company said that Indiabulls Asset Reconstruction Company has been granted the certificate of registration by the Reserve bank of India.

The announcement was made on Sunday, 21 May 2017.

Meanwhile, the S&P BSE Sensex was up 122.80 points, or 0.4% at 30,587.72. The S&P BSE Mid-cap index was down 43.86 points, or 0.3% at 14,600.14.

On the BSE, 2 lakh shares were traded on the counter so far as against the average daily volumes of 13.88 lakh shares in the past one quarter. The stock was locked at a high of Rs 137.80 so far during the day.

The stock had hit a 52-week high of Rs 152 on 16 May 2016. The stock had hit a 52-week low of Rs 18.05 on 10 June 2016.

The stock had dropped 10.5% in previous four sessions to Rs 131.25 on 19 May 2017 from a close of Rs 146.65 on 15 May 2017 after witnessing a robust rally.

The stock had outperformed the market over the past one month till 19 May 2017, rising 33.25% compared with the 3.85% rise in the Sensex. The scrip had also outperformed the market in past one quarter, spurting 272.34% as against Sensex's 7.01% rise.

The mid-cap company has equity capital of Rs 78.65 crore. Face value per share is Rs 2.

Indiabulls Ventures said that Indiabulls Asset Reconstruction Company (ARC), a wholly owned subsidiary of the company has been granted the certificate of registration (CoR) by the Reserve bank of India (RBI) under Section 3 of the SARFAESI Act, 2002.

Indiabulls Ventures (IVL) is the sole sponsor of the ARC and owns 100% equity stake in the company. IVL has already infused Rs 100 crore equity in the ARC and is fully compliant with the requisite criteria laid down by RBI vide its latest guidelines. The company intends to start its operations shortly.

Indiabulls Ventures' consolidated net profit spurted 2181% to Rs 54.06 crore on 113.6% surge in total income to Rs 202 crore in Q4 March 2017 over Q4 March 2016.

Indiabulls Ventures (formerly known as Indiabulls Securities) is one of the leading company in the segment of capital market and real estate marketing and distribution.

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