Jhunjhunwala stake-buy takes Firstsource up 35% in 2 days

Moneycontrol Bureau

Firstsource Solutions shares surged 35 percent in two days after ace investor Rakesh Jhunjhunwala bought 2.5 crore shares (3.8 percent stake) in the BPO company at Rs 10 apiece via block deal on Thursday.

OHM Enterprises also bought 32 lakh shares (0.5 percent stake) at same price.

Meanwhile, Aranda Investment Mauritius (which held 3.35 percent or 2,20,32,274 shares) sold 2,01,89,244 equity shares and ICICI Bank (which was holding 6.88 percent or 4,52,66,823 shares) offloaded 1.3 crore shares at Rs 10 apiece.
 
Metavante Investments Mauritius is the largest public shareholder in the company with 6.9 percent stake as of March 2013. Promoter SPEN LIQ Private Limited holds 56.86 percent stake in the company.

On Wednesday, in an interview with CNBC-TV18, Rajesh Subramaniam, MD and CEO of Firstsource said he was confident of repaying loans worth USD 180 million over a period of next four years thereby decreasing its debt-to-equity and debt-to-EBITDA ratios going forward.

The company made its first quarterly repayment of USD 11.25 million on its outstanding debt on June 26, 2013 from internal accruals. Subramaniam said the company is required to pay USD 45 million debt every year, over the next four years.

Firstsource does not plan to raise any funds for capital expenditure, interest or loan repayment as it is confident to meet these requirements from the internal accruals.

On Thursday, CARE Ratings assigned a 'CARE BBB+' rating to company's long-term bank facilities. Instruments with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations and carry moderate credit risk. CARE Ratings has also assigned a 'CARE A3+' rating to the Company s short-term bank facilities.

At 11:22 hours IST, the stock was quoting at Rs 12.70, up 9.29 percent amid large volumes on Friday.

Trading volumes increaesd 7.43 times to 29,46,392 shares as compared to its five-day average of 3,96,148 shares.

On Thursday, the stock was locked at 20 percent upper circuit in late trade after the news.