Former Citibank chief Vikram Pandit's decision to buy a stake in JM Financial was cheered by investors on Friday as the company's shares shot up by over 13 per cent after touching their one-year highs intra-day.
Pandit will join hands with his business partner Hari Aiyar to buy a 3 per cent stake in the company for Rs 45 crore. He will also spearhead Nimesh Kampani-led JM Financial's proposed banking venture and make a strategic investment in the financial services group.
JM Financial will nominate Pandit as the non-executive chairman of its proposed banking venture in which he and Aiyar would have the right to purchase shares up to the amount prescribed by the Reserve Bank of India.
Shares of JM Financial closed the day's trade 13.38 per cent higher at Rs 26.70 on the Bombay Stock Exchange (BSE). Intra-day, the stock surged 16.77 per cent to Rs 27.50 - its 52-week high.
On the National Stock Exchange, the scrip settled at Rs 26.55, up 12.74 per cent from its previous close.
In terms of volume, 128.52 lakh shares of the company changed hands on BSE, while over 4.46 crore were traded on NSE.
With inputs from PTI