Capri Global shares surge 20% to hit one-year high level; here's why

Shares of Capri Global Capital Ltd rose sharply in Tuesday's deals to scale their one-year high level. The stock jumped 20 per cent to hit Rs 977. The counter has gained 72.66 per cent from its 52-week low price of Rs 565.85, hit on March 27, 2023.

Today's sharp jump in the share price came after the company said it is planning to develop an insurance platform to maximize the corporate agency license from Irdai. The company had received a composite corporate agency license from the Insurance Regulatory and Development Authority of India in December last year to distribute life, general, and health insurance products.

"CGCL is planning to leverage technology to revolutionize the way insurance products and services are delivered to customers. The company is planning to use data analytics, artificial intelligence, and blockchain to deliver insurance solutions. This will enable CGCL to automate claims processing and customer support services, thereby reducing the cost of operations while improving customer satisfaction. Hence, the key goal of the Insurtech platform will be to create an ecosystem of insurers who can offer coverage in a more affordable, customer-friendly way. This in turn will assist the Company to immensely contribute to the 'Insuring India by 2047' mission of Irdai," it stated in a exchange filing.

"The company's basic motto is to offer a customer-centric approach to insurance. CGCL will provide a wide range of insurance products and services through website, app, and call centers. Moreover, the platform will adopt a customer-friendly payment policy too that will allow customers to pay in several ways, including through digital wallets, credit cards, net banking, and debit cards," it also mentioned.

Further, the company underscored that it expects to generate a net fee income of Rs 20 crore from insurance cross-sell in FY25.

On BSE, around 2.07 lakh shares changed hands today. The figure was higher than the two-week average volume of 36,000 shares. Turnover on the counter stood at Rs 19.18 crore, commanding a market capitalisation (m-cap) of Rs 20,149.16 crore.

There were 41,836 buy orders against sell orders of nil shares.

As of December 2023, promoters held 69.89 per cent stake in the company.

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