SG Finserv shares rise nearly 20% after top investor Madhu Kela's bulk stake purchase

SG Finserve is an NBFC offering financing solutions to dealers, distributors, retailers, buyers, suppliers, and transporters, among others of Indian corporates.

Shares of SG Finserve hit as much as 20 per cent during Tuesday's trading session after a significant bulk purchase by renowned investor Madhusudan Murlidhar Kela.

The company's stock has surged more than 23 percent over the past month, significantly outperforming the benchmark NSE Nifty 50 index, which rose by 5 percent in the same period. (PTI)

Kela acquired 9.51 lakh shares of the company, which is about a 1.7 per cent stake in it, at a price of ₹350.01 on Monday.

At 12:20 pm IST, the company's shares were trading at ₹407.80 on the Bombay Stock Exchange (BSE), which was a rise of 13.10 per cent or ₹47.25. The intraday high was ₹432.65.

The company's stock has surged more than 23 per cent over the past month, significantly outperforming the benchmark NSE Nifty 50 index, which rose by 5 percent in the same period, according to a Moneycontrol report.

What is SG Finserve?

SG Finserve is a Non-Banking Financial Company (NBFC) which offers business financing solutions to dealers, distributors, retailers, buyers, suppliers, and transporters, among others of Indian corporates.

CRISIL Ratings recently reaffirmed the credit rating for its ₹1,000 crore bank loan facilities, assigning it an AA (CE)/Positive rating, taking it from a provisional rating to a final one.

Its loan book also nearly doubled from the September quarter, reaching ₹1,568 crore, which is an impressive 92 percent quarter-on-quarter growth.

“With this momentum, we remain confident in achieving our loan book targets of ₹4,000 crore in FY26 and ₹6,000 crore in FY27,” the company had previously stated, as per the report.

Arihant Capital Markets, which is the sole brokerage tracking SG Finserve, maintains a ‘buy’ rating on the stock, with a target price of ₹783, according to the report.