Comments
Shares of listed rating agencies Crisil and ICRA surged on Monday on the bourses ahead of Credit Analysis and Research’s initial public offering.
ICRA touched a record high on Monday at Rs 1,582.10. The stock closed at Rs 1,576, up 19.53 per cent on the Bombay Stock Exchange.
The other listed ratings agency Crisil also surged on the bourses to close at Rs 1,060.75, up 10.39 per cent from its previous close on the BSE. Intra-day, the stock zoomed to Rs 1,099.90. Both counters attracted heavy trading interest, and volumes were several times higher than usual.
According to analysts, Crisil and ICRA have rallied as CARE is coming out with a public issue at a stiff valuation. However, once the issue is over, these stocks may correct, they say.
The CARE IPO, which opens on December 7 and closes on December 11, will be the third rating agency to be listed on the bourses. “To some extent, the CARE IPO has been over priced. Long-term investors who accumulate the stock post listing will benefit,” said Dharmesh Pancholi, Senior Manager, Advisory (Equity), Sharekhan.
Analysts said the increasing number of opportunities in this sector is exciting investors. Nowadays, a mere downgrade can have an impact on the markets.
“The importance of ratings has gone up in recent times. Not only is there respect for ratings but also a demand for it. The increase in the number of bond and debt issuances is positive for the ratings industry,” said Shrikant Shetty, an independent analyst.
The ICRA stock has constantly been gaining over the last month. It was Rs 1,359.70 in the month-ago period. The scrip of Crisil has also seen an increase from Rs 940 in the month-ago period.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.