Trend Reversal: This stock hits a 20 per cent upper circuit after falling to a 52-week low recently
Spandana Sphoorty surges as it puts an end to the long-drawn promoter–investor dispute.
The shares of Spandana Sphoorty have bounced 20 per cent from its 52-week low of Rs 288.75, which could signal a trend reversal as it puts an end to the long-drawn promoter–investor dispute. Investors should keep this stock on their radar as in the coming days the stock might witness an uptrend.
The shares of Spandana Sphoorty rallied on the news of a settlement with its promoter and founder managing director Padmaja Reddy. The MFI informed in its exchange filing on June 22 that its board members along with its subsidiaries - Criss Financial Limited and Caspian Financial Services Limited, have approved a settlement agreement resolving all pending disputes.
Reddy who owns a 17 per cent stake in the MFI was opposed to the proposed sale of the company to Axis Bank and subsequently resigned. Kedaara Capital (a private equity investor) was alleged to attempt the sale.
However, a joint press release statement on June 22 ended the dispute stating that “While Reddy is no longer serving as the Managing Director of the Company; she continues to be a substantial shareholder and member of the Company’s Board”
The rural-focused NBFC-MFI has been penalised on the bourses while it was tied in a tussle between its promoter- and investor. The share price tumbled by 30 per cent in a month on June 20 (52-week low) while YTD the shares of Spandana Sphoorty have fallen by 10.72 per cent. Compared to this, the BSE 500 has corrected by 13.01 per cent YTD and BSE Finance by 13.53 per cent.
The shares of Spandana Sphoorty closed at Rs 399.35, still at a considerable discount to its 52-week high of Rs 745 logged a year ago. Investors should keep an eye on Spandana Sphoorty to know if it continues today’s positive momentum.