Capital First hit a new 52-week high today at Rs.902, rising over 8%, clocking volumes of over 3 times.

The  reason? This company is owned by PE fund, Warburg Pincus’s affiliate companies. They hold 35.97% stake, and the founder is Vaidyanathan ,who has a 10.5% stake. GIC holds a good 13.91%.

Now the news is that over the weekend, IDFC Bank announced its merger with the NBFC.

The swap ratio is 139:10 – for every ten shares of Capital First held, 139 shares of IDFC bank will be given.

The merger will be completed over a span of 9 to 12 months.

Following this development, many fund and brokerage houses have given out a BUY call on the stock and that explains the surge in the volumes!