SG Finserve Stock Hits Upper Circuit After Madhusudan Kela Buys Stake

SG Finserve Ltd. share price soared 20% during early trade on Tuesday after veteran investor Madhusudan Murlidhar Kela acquired 1.7% stake in the previous session.

Kela purchased 9.51 lakh shares at Rs 350.01 per share in a bulk deal at an aggregate amount of Rs 33.3 crore on the BSE. On the other hand, Dinesh Pareekh sold three lakh shares, representing a 0.53% stake, for Rs 10.5 crore.

SG Finserve, which also counts ace investor Ashish Kacholia as a shareholder, is a tech-enabled, non-banking financial company that provides business financing solutions to channel partners such as dealers, distributors, retailers, buyers, suppliers, and transporters. Kacholia holds over 6.38 lakh shares, or 1.14% of the total shareholding, in the company, as per data available on BSE.

Kela is known for his extensive experience in Indian capital markets. According to Trendlyne, his recent additions include Indostar Capital Finance Ltd., Nazara Technologies Ltd., and Waaree Energies Ltd. He also recently exited a 1.6% stake in Choice International Ltd. Additionally, he purchased shares of Godavari Biorefineries Ltd. through bulk deals.

SG Finserve stock rose 20% intraday to hit the upper price band of Rs 432.65 apiece. The scrip was trading 15% higher by 10:00 a.m. The benchmark NSE Nifty 50 was up 0.76%.

The stock has fallen 3% in the last 12 months and risen 1.5% on a year-to-date basis. The total traded volume so far in the day stood at 69 times its 30-day average. The relative strength index was at 69.