InvestorQ : Why have ICRA shares rallied so sharply on the stock markets?
NISHA Nayak made post

Why have ICRA shares rallied so sharply on the stock markets?

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Priyanka N answered.
3 months ago
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ICRA rallied by over 9% in early trades on Friday 19 March but eventually the stock closed at the 20% upper circuit, gaining Rs.557 in a single day. The rally was triggered after PPFAS Asset Management, floated by the Late Parag Parikh, purchased more than 2% stake in the rating agency via open market transactions. PPFAS is a relatively small fund and hence their buying a big stake is significant, especially since they are deep value long term investors.

On Thursday, 18 March, Parag Parikh Flexi Cap Fund bought a total of 201,655 shares representing 2.09% stake in ICRA. The total value of the deal was pegged at Rs.56 crore. The shares were purchased at an average price of Rs.2,780 per share and exactly by the end of the next day, the stock is up by over 20%. Apart from credit ratings, ICRA also provides outsourcing, risk management solutions, content, consulting and analytical services.

The ratings has been under some amount of pressure owing to the pandemic.

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