Aavas Financiers witnessed an intraday surge of 8% on April 5 following the announcement of robust growth in disbursements and assets under management for the quarter ending March.
The non-bank finance company reported a notable 20% year-on-year increase in disbursements, totaling Rs 1,890 crore for the January-March period. Additionally, assets under management surged by 22% year-on-year to reach Rs 17,300 crore for the same quarter.
The impressive quarterly business update sparked expectations of strong earnings performance for the March quarter. By midday, Aavas Financiers was trading at Rs 1,550.50 on the NSE.
Furthermore, the release of the quarterly updates led to a surge in trading volumes for the company. With approximately 34 lakh shares changing hands on the exchanges thus far, trading activity spiked significantly compared to the one-month daily traded average of 9 lakh shares.
During the entire fiscal year 2024, Aavas Financiers took significant strides in expanding its operational footprint by adding 21 new branches to its network. This strategic expansion underscores the company’s commitment to enhancing its accessibility and services to a wider customer base.
In the recent trading session, Smallcap World Fund INC opted to reduce its stake in Aavas Financiers through two separate open market transactions. The fund divested a total of 1.27 percent stake, selling 4.23 lakh shares of Aavas Financiers at an average price of Rs 1,421.05 per share, and another 5.82 lakh shares at Rs 1,420.19 per share.
Prior to these transactions, Smallcap World held a 1.92 percent stake in Aavas Financiers by the end of the December quarter. This move suggests a strategic realignment of the fund’s investment portfolio.
The expansion of Aavas Financiers’ branch network combined with the recent investment activity by Smallcap World Fund INC reflects the dynamic nature of the financial landscape and highlights the company’s efforts to adapt and grow amidst changing market conditions.
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