CARE shares reflected the increased valuations after the Crisil deal as its shares increased 11.79% at `1,596.85 apiece on the BSE. The shares had risen to `1,668.65 per share earlier in the day .Crisil shares gained 1.54% to end at `1,949.65 apiece.In a statement, Crisil said the stake purchase was an investment opportunity for the company . This stake purchase is an investment in the excellent longterm prospects of the credit rating sector in the country . “Crisil has diversified business with 13rd of the revenue coming from advisory services, so they are not as dependent on ratings as CARE is. So, in that sense this share purchase is just Crisil protecting its turf possibly for a future acquisition,“ said a banker familiar with both companies.

Source: Economic Times June 30, 2017 03:00 UTC