Sundaram Finance gains after seeking shareholders' nod for fund raising

Sundaram Finance rose 3.06% to Rs 1,524.75 at 11:53 IST on BSE after the company said it will seek shareholders' nod for private placement of debentures upto a sum of Rs 7500 crore during the period 1 April 2015 to 31 March 2016.

The announcement was made after market hours yesterday, 25 February 2015.

Meanwhile, the S&P BSE Sensex was down 69.10 points or 0.24% at 28,938.89.

The stock surged on high volumes. On BSE, so far 17.45 lakh shares were traded in the counter as against average daily volume of 3,517 shares in the past one quarter.

The stock hit a high of Rs 1,545 and a low of Rs 1,503 so far during the day. The stock had hit a record high of Rs 1,608.35 on 11 February 2015. The stock had hit a 52-week low of Rs 600 on 28 February 2014.

The stock had outperformed the market over the past one month till 25 February 2015, rising 1.95% compared with the Sensex's 0.93% fall. The scrip had also outperformed the market in past one quarter, advancing 16.45% as against Sensex's 2.36% rise.

The large-cap company has equity capital of Rs 111.10 crore. Face value per share is Rs 10.

Sundaram Finance also sought shareholders' nod for authorising the board of directors of the company to make investments upto Rs 2000 crore from time to time.

Sundaram Finance's net profit rose 7.1% to Rs 110.96 crore on 0.8% growth in total income to Rs 591.75 crore in Q3 December 2014 over Q3 December 2013.

Sundaram Finance's activities span savings products like deposits and mutual funds, car and commercial vehicle finance, insurance, home loans, software solutions, business process outsourcing, tyre finance, fleet cards, tractor finance and mutual funds R&T.

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