Stock under Rs 100: This NBFC stock is trading at 1.04 times its book value to be in the limelight on Monday!

The stock is trading at 1.04 times its book value and it is trading near to its 52-week high.

L&T finance Holdings Ltd is a NBFC and offers a diverse range of financial products and services such as Farm equipment finance, Two-wheeler finance, Micro Loans, Consumer loans, home loans, Loans against property (LAP), Real estate finance, infra finance, Infra Debt Fund and other service.

The stock on Friday saw a jaw dropping move of nearly 5.5 per cent, with volume astounding jump in the daily traded volume as it witnessed nearly fourfold jump in total traded volume as compared to its 50-days average volume.

What’s the tailwind behind this mammoth move in the stock? In the recent press released by the stock, the NBFC announced “In continuation to our intimations dated December 23, 2021, October 11, 2022 and October 14, 2022 made to the stock exchanges, pursuant to Regulation 30 and other applicable regulations, if any, of the Listing Regulations, with respect to the proposed sale of 100 per cent of the paid-up share capital of L&T Investment Management Limited (“LTIML”), a wholly owned subsidiary of the Company and the asset manager of L&T Mutual Fund to HSBC Asset Management (India) Private Limited (“Purchaser”), asset manager of HSBC Mutual Fund, we wish to inform that the said sale transaction has been completed today, i.e., November 25, 2022”

The Company was to receive an aggregate purchase consideration of INR equivalent of USD 425 million, subject to adjustments as set out in the definitive documents as consideration for the transaction. In continuation of the same, this is to further inform you that the Company has (i) received Rs 3,484 crores (equivalent of USD 425 million) as consideration for the sale of LTIML from the Purchaser; and (ii) also realised surplus cash balance of Rs 764 crores in LTIML pursuant to the definitive documents.

The stock is trading at 1.04 times its book value and it is trading near to its 52-week high. The stock is trading above its all-key moving average i.e., 20, 50, 100 and 200-DMA.