Muthoot Finance gains after completing acquisition of Muthoot Insurance Brokers

Muthoot Finance gained 1.52% to Rs 263.80 at 12:00 IST on BSE after the company said that it has completed acquisition of Muthoot Insurance Brokers Private Ltd.

The announcement was made during market hours today, 21 June 2016.

Meanwhile, the BSE Sensex was down 44.13 points, or 0.16% to 26,822.79.

On BSE, so far 14,332 shares were traded in the counter, compared with an average volume of 63,588 shares in the past one quarter. The stock hit a high of Rs 265.90 and a low of Rs 258.55 so far during the day. The stock hit a record high of Rs 288.75 on 7 June 2016. The stock hit a 52-week low of Rs 152 on 23 September 2015. The stock had outperformed the market over the past one month till 20 June 2016, gaining 21.51% compared with 6.19% gains in the Sensex. The scrip had also outperformed the market in past one quarter, surging 46.15% as against Sensex's 7.67% gains.

The large-cap company has an equity capital of Rs 399 crore. Face value per share is Rs 10.

Board of directors of Muthoot Finance on 29 October 2016 had approved acquisition of Muthoot Insurance Brokers Private Ltd (MIBPL) by transfer of equity shares from its existing shareholders for a consideration of Rs 20 crore and to make it as a wholly owned subsidiary. Approval for the transfer of shares has been received from Reserve Bank of India and Insurance Regulatory and Development Authority of India (IRDA) subsequent to which the transaction is completed, Muthoot Finance said in a statement.

MIBPL is an unlisted private limited company holding a licence to act as Direct Broker from IRDA since 2013.