The stocks of rating agency Icra touched an all-time high on Friday after its promoter Moody?s bought 21.55% stake via open offer from public shareholders to raise its stake to 50.06% in the company, as per a stock exchange disclosure .
On Friday, the company announced it had acquired 21.54 lakh shares representing 21.55% equity stake at a value of R517.13 crore. The stock rose to a record high of R2,779.40, rallying 17.7% intraday, before closing 11.4% higher than its previous day’s close at R2,632 on BSE.
Moody?s Singapore Pte, Moody?s Investment Company (India) and Moody?s Corporation ? which held 28.51% or 28 lakh shares in Icra before the open offer ? had offered to buy 26.5 lakh shares in the Delhi-based rating agency at a price of R2,000 per share, aiming to take its stake to 55.01% in Icra. Last month, the open offer price was revised upwards to R2,400.
The deal came with a condition that promoters would not accept any shares if the number of shares tendered was lower than 21.491 lakh in the offer, that would give Moody’s at least 50% holding in Icra.
The open offer began on June 3 and closed June 16. Citigroup was managing the open offer. Shares of other listed rating agencies also rose on Friday. While Credit Analysis and Research rose 4.3% to R1,051, Crisil climbed marginally by 0.05% to R1,707.
Last year, McGraw Hill Financial raised its stake in rating agency Crisil to 67.8% by acquiring 15.1% equity shares worth R1,290 crore through a voluntary open offer.
Icra is India’s third-largest rating company by revenues and provides offshore rating services to Moody?s. Icra’s net profit for FY14 stood at R58.73 crore.
