Spandana Sphoorty gains after Max Life, Kotak Mahindra Life acquire 3.2% stake

The Spandana Sphoorty stock jumped nearly 2 percent in the early trade on August 31 after Max Life and Kotak Mahindra Life acquired a 3.2 percent stake in the company. Prominent investor Valiant sold 4.9 percent equity.

At 10.24 am, the Spandana Sphoorty stock was trading 1.09 percent higher at Rs 807.50 on NSE.

Details of the exchange of equity

Max Life Insurance Company’s High Growth Fund, Max Life Insurance Company A/C PAR, and Kotak Mahindra Life Insurance Company Limited’s Classic Opportunities Fund bought a total of 3.2 percent stake in the company, which means they now own 22.77 lakh shares. These shares were bought directly from the market at Rs 765 apiece.

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Strategic investor Valiant group sold some of its equity in Spandana Sphoorty. Here is the break up:

Valiant Mauritius Partners FDI sold 16.07 lakh shares at Rs 765 a share

Valiant India Opportunities sold 5.52 lakh shares at Rs 765.02 a share

Valiant Mauritius Partners sold 4.6 lakh shares at Rs 765.01 a share

Valiant Mauritius Partners Offshore sold 8.8 lakh shares at Rs 765.38 a share.

Together, these strategic investors sold 22.77 lakh shares, amounting to 4.9 percent of their equity in the company. This selloff was from 94.79 lakh shares, or a 13.35 percent stake, owned by them in company as of June 2023.

Spandana Sphoorty stock call: Check rating, target price

In a July 25, 2023 report, brokerage firm ICICI Securities had a positive outlook on the stock. The report had a “buy” rating for the stock with a target price of Rs 1,100 a share, signifying a potential upside of 37 percent.

The brokerage firm said, “Improving trajectory in earnings sustained with return on assets (RoA) expanding to industry-leading 5.9 percent.”

Spandana Sphoorty stock has given a return of 38.43 percent over the past six months against Nifty50’s 11.81 percent during the same period.

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