ICRA surges 9% after Parag Parikh Flexi Cap Fund buys stake

Shares of ICRA, on Friday, rallied 9 per cent intra-day to Rs 3,036.50 on the National Stock Exchange (NSE) after PPFAS Asset Management bought more than two per cent stake in the rating agency company via open market. The stock is trading close to its 52-week high level of Rs 3,137.90, touched on January 12, 2021.

On Thursday, March 18, PPFAS Mutual Fund A/C Parag Parikh Flexi Cap Fund purchased 201,655 shares representing 2.09 per cent stake in for Rs 56.06 crore. The mutual fund bought shares at price of Rs 2,780.04 per share through block deal on the NSE, the exchange data shows. The name of the buyer was not ascertained immediately.

PPFAS Asset Management (PPFAS AMC) has been promoted by Parag Parikh Financial Advisory Services.

is one of the leading credit rating agencies in India, which offers, through its subsidiaries, rating services in Nepal and Sri Lanka. It also provides outsourcing, risk management solutions, content, consulting, and other analytical services through its subsidiaries.

In the October-December quarter (Q3FY21), ICRA’s consolidated operating income was Rs 77.35 crore, against Rs 79.36 crore on year on year (y-o-y) basis, reflecting a de-growth of 3 per cent. Consolidated profit after tax (PAT) was at Rs 24.45 crore, higher by 9 per cent on y-o-y basis.

The de-growth in consolidated revenue in Q3FY21 has been mainly due to decline in revenue from ratings segment. The outsourcing, information services and consulting segments have shown a good traction, driven by growth in both global and domestic businesses, said.

At 09:46 am, the stock was trading 6 per cent higher at Rs 2,960 on the NSE, as compared to 0.57 decline in the Nifty50 index. A combined around 20,000 equity shares have changed hands on the counter on the NSE and BSE.

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