The country's market has remained buoyant since the beginning of the week. After Monday and Tuesday, the Sensex and Nifty50 graphs remained positive on Wednesday as well. In this situation, Urban Company's stock saw massive growth on Wednesday. Compared to the last closing, the company's share price touched ₹127.30 on the Bombay Stock Exchange, rising by nearly 16 percent. Why did this company's share price increase so much?

Also Read | Sensex, Nifty lose early gains after positive opening; Zomato, Tata stocks shine

Large stake purchase by SBI Mutual Fund drives stock rally

State Bank's mutual fund has recently made a large investment in Urban Company's stock. SBI Mutual Fund has purchased 5.75 crore shares of this company. This transaction took place at ₹109.85 per share. SBI Mutual Fund has invested a total of ₹632.21 crore in this company. Due to this investment, SBI Mutual Fund's shareholding in Urban Company has increased from 1.89 percent to 3.98 percent.

While SBI Mutual Fund bought shares, ABG Capital sold 1.74 crore shares of Urban Company. DF International Partners sold 1.76 crore shares. Another company also sold Urban Company shares. SBI MF bought all those shares. Nearly 94.1 crore shares of Urban Company were in the lock-in period. That period ended on Tuesday. As a result, there are no more restrictions on trading those shares.

Also Read | 60% free seats on flights: Govt announces sweeping airline reforms- all you need to know

Urban Company got listed on the stock market in September last year. The company's stock achieved massive success right at listing. This stock was listed at 57.5 percent higher than the issue price. But after that, the share price fell considerably. On Wednesday, this stock saw significant growth from that level.

{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}