Care Ratings Jumps 8% As SBI To Buy Stakes In CareEdge Global

Shares of Care Ratings Ltd. surged over 8% on Thursday after State Bank of India and NSE IFSC signed a non-binding term sheet to acquire 9.9% stakes each in CareEdge Global IFSC Limited. Following the deal, Care Ratings will retain an 80.2% holding, and CareEdge Global will no longer remain a wholly owned subsidiary.

In an exchange filing, SBI said, “Pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we inform that State Bank of India has signed Non-Binding Term Sheet with Care Ratings Limited to purchase 29,70,000 equity shares of CareEdge Global IFSC Limited (CGIL) (pending execution of Definitive Agreement) for acquiring stake of upto 9.90 % in CGIL.”

CareEdge Ratings provides ratings for a variety of industries, such as manufacturing, infrastructure, and the financial sector, which includes banking, and non-financial services. The company has played a pivotal role in the development of bank debt and capital market instruments, such as commercial papers, corporate bonds and debentures, and structured credit.

The scrip rose as much as 8.63% to Rs 1,650 apiece. It pared gains to trade 6.92% higher at Rs 1,624 apiece, as of 12:20 p.m. This compares to a 0.39% advance in the NSE Nifty 50 Index.

It has risen 16.35% in the last 12 months. Total traded volume so far in the day stood at 6.6 times its 30-day average. The relative strength index was at 47.51.