Shares of Aavas Financiers, a prominent player in the housing finance sector, exhibited a 2 percent surge in early trading on the National Stock Exchange (NSE) on September 7, following the announcement of a strategic investment by Foreign portfolio investor Smallcap World Fund Inc. As of 10 am, the stock was trading 3 percent higher compared to its previous day’s closing price of Rs 1,632.
Smallcap World Fund Inc. acquired a noteworthy 0.57 percent stake in Aavas Financiers on September 7, marking a significant move in the financial markets. The acquisition consisted of 4.54 lakh shares, amounting to a total value of Rs 75.11 crore, completed through open market transactions. The average purchase price per share stood at Rs 1,654.
Aavas Financiers, headquartered in Jaipur, specializes in extending housing loans to customers belonging to the low and middle-income segments. Their primary focus lies in semi-urban and rural areas, catering to individuals often excluded from mainstream housing financial institutions and banks due to a lack of income proof documents such as IT returns and salary slips. The company plays a pivotal role in addressing the financial needs of these underserved segments.
As this development unfolds, market observers and investors are keen to assess the potential implications of Smallcap World Fund Inc.’s investment in Aavas Financiers. With a mission to bridge the gap in housing finance accessibility, Aavas Financiers has garnered attention for its commitment to serving segments often overlooked by larger housing finance companies and banks.
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