Share price of Muthoot Finance, a leading gold financing company in India, has gained 27% in seven trading sessions as demand for gold as a safe haven investment rose amid markets falling worldwide on spread of coronavirus outside China. The firm raised Rs 3,900 crore from international bond investors through its second issue of dollar bond last week which also helped its stock hit fresh high today.
Muthoot Finance share price stood at Rs 740.80 on February 13 this year. The stock price hit an all-time high of Rs 945.75 today, rising 3.47% from the previous close of Rs 913.30 on BSE. Market cap of the firm rose to Rs 37,763 crore in early trade. The large cap share has gained 75.39% in the last one year and risen 23.01% since the beginning of this year. During one month, the stock has rallied 27%.
Market capitalisation of the firm rose to Rs 37,800 crore on BSE. 1.56 lakh shares changed hands amounting to turnover of Rs 14.57 crore on BSE.
The rise in share price of Kerala-based Muthoot Finance came after the firm said it raised $550 million (around Rs 3,900 crore) through dollar bond, offering a coupon of 4.4 percent. The proceeds of the issue would be used towards lending. The company had raised $450 million through its maiden three-year bond in October last year.
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A rise in gold prices has also tilted sentiment in favour of Muthoot Finance stock.
Gold price which stood at Rs 41,000 per 10 gm on February 13 crossed Rs 43,000 in domestic market today. Muthoot Finance which gives loan against gold is seen benefiting from the rally which is seen pushing demand for loans from its existing and new customers.
Q3 earnings of the firm have also helped the stock scale new high last week.
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On February 17, Muthoot Finance share price hit fresh 52-week high after the company reported a 66 per cent rise in its consolidated net profit to Rs 803 crore for the third quarter ended December compared to Rs 485 crore in the corresponding period of 2018-19. Share price of Muthoot Finance rose up to 17% to Rs 873.75 compared to the previous close of Rs 746.60 on BSE.
The firm reported a 35% rise in total income to Rs 2,313 crore during the reported quarter of 2019-20 from Rs 1,717 crore in the year-ago period.
By Aseem Thapliyal