IIFL Finance shares hit 52-week high after winning bid to acquire Karvy accounts
The company has won the bid to acquire about 1.1 million demat accounts held by Karvy Stock Broking, while Axis Securities emerged as the successful bidder for broking accounts held by Karvy.
February 25, 2021 / 10:28 AM IST
IIFL Finance share price gained over 7 percent hitting new 52-week high on February 25. The company has won the bid to acquire about 1.1 million demat accounts held by Karvy Stock Broking, while Axis Securities emerged as the successful bidder for trading accounts (broking accounts) held by Karvy.
"This is to inform you that IIFL Securities has emerged as the successful bidder for demat accounts held by Karvy with NSDL and CDSL. The said transfer of demat accounts is subject to remittance of the bid amount and submission of the necessary documents in relation thereto," IIFL Securities said in an exchange filing.
In November 2019, the Securities and Exchange Board of India barred Karvy from taking new clients for misusing client collateral worth more than ₹2,000 crore for its own trades.
A company said on February 24 that it raised Rs 100 crore through non-convertible debentures (NCDs) on a private placement basis. It said NCDs would be listed on the National Stock Exchange (NSE).
"Finance committee of the board of directors of the company… approved allotment of 1,000 NCDs…of a face value of Rs 10 lakh each, for cash at par, aggregating to Rs 100 crore, on private placement basis,” IIFL Finance said in a regulatory filing. NCDs will carry an interest rate of 7.7 percent per annum.
The stock price has surged over 26 percent in the last five days and was trading at Rs 283.80, up Rs 12.50, or 4.61 percent. It has touched a 52-week high of Rs 292.00.
The stock has touched an intraday high of Rs 292.00 and an intraday low of Rs 276.70.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum—price above short, medium and long term moving averages with growth in net profit and increasing profit margin (QoQ).
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