Dewan Housing Finance Corporation rose 1.22% to Rs 207.75 at 10:55 IST on BSE on reports the company is in talks to acquire financial products distributor Andromeda Sales and Distribution.
Meanwhile, the BSE Sensex was down 2 points, or 0.01%, to 25,878.38 .
On BSE, so far 34,000 shares were traded in the counter, compared with an average volume of 1.82 lakh shares in the past one quarter. The stock hit a high of Rs 208.40 and a low of Rs 205.30 so far during the day. The stock hit a 52-week high of Rs 268 on 10 August 2015. The stock hit a 52-week low of Rs 140.55 on 12 February 2016. The stock had outperformed the market over the past one month till 21 April 2016, rising 10.71% compared with 2.35% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.76% as against Sensex's 8% rise.
The mid-cap company has an equity capital of Rs 291.80 crore. Face value per share is Rs 10.
According to reports, Dewan Housing Finance (DHFL) is in talks to acquire Andromeda Sales and Distribution, one of the largest distributors of loans, mortgage, financing and financial instruments in India. The deal size is pegged at Rs 200-250 crore. The Andromeda acquisition will help Dewan expand its reach to smaller cities, reports added.
The Mumbai-based financial services holding company Casa Capital Management holds about 80% stake in Andromeda. Andromeda Group, acquired by the Malaysian venture capital fund Navis Capital in 2007 for Rs.180 crore, was sold to Casa Capital in 2012 after carving out the loan distribution business.
Andromeda currently operates across 16 cities and has facilitated the disbursal of loans worth more than Rs 5000 crore. Andromeda mostly operates through its website andromedaloans.com, and distributes credit cards, mortgages, unsecured business loans and car loans. Andromeda has partnered with 35 banks and financial institutions.
Net profit of Dewan Housing Finance Corporation (DHFL) rose 16.4% to Rs 185.90 crore on 23.6% rise in operating income to Rs 1885.33 crore in Q3 December 2015 over Q3 December 2014.
DHFL provides loans for purchase or construction of residential houses.
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