Stock Market Today: Religare Enterprises Limited (REL) shares surged nearly 10 per cent to a fresh 52-week high of ₹304.60 on Tuesday, December 10 following the Reserve Bank of India’s (RBI) approval to the Burman family to increase their stake in the company.
Burman family plans to raise its stake in the company from 25 per cent to 51 per cent via an open offer.
Following this announcement, Religare Enterprises share price was trading in the green, up 4.21 per cent at ₹289.30 at 1:59 pm on the BSE. The stock surged as much as 9.6 per cent in intra-day deals. The company enjoys a market capitalisation of ₹9,555.44 crore.
The stock of Religare Enterprises surpassed its earlier peak of ₹297, recorded on October 1, 2024. In December alone, the share price has witnessed a remarkable surge of 25%.
RBI’s conditions for stake acquisition
The RBI granted permission to the Burman family entities, including Puran Associates Private Limited, VIC Enterprises Private Limited, M.B. Finmart Private Limited, and Milky Investment & Trading Company, to increase their stake in REL under the Master Direction for Core Investment Companies. This approval comes with specific conditions, including:
- Submission of a consolidation plan for the NBFCs in the Burman and Religare groups within 90 days.
- Immediate reporting of any adverse regulatory or legal actions affecting the acquirers or ultimate beneficial owners (UBOs).
- A minimum 30-day public notice before completing the stake acquisition.
“The acquirers are advised to consolidate the NBFCs in the resulting structure/group (both Burman and Religare group) at the earliest and not later than March 31, 2026. In this regard, the acquirers are advised to submit a concrete and specific consolidation plan, with specific timelines, duly supported by Board Resolutions from each of the NBFCs within the groups, within 90 days from the date of this communication,” RBI said in a letter sent to Religare Enterprises.
REL further informed that it has not yet received the approval for the appointment of four proposed Directors from the central bank. “The NBFC is advised to submit the names of proposed directors along with the Board resolution, after ensuring that they are ‘fit and proper’,” the central bank order said.
The Burman family, a key promoter group of Dabur India Limited, had earlier announced its intent to increase its stake in REL. They started acquiring stakes in the company 2018 but encountered resistance from Religare’s management and faced regulatory scrutiny. With this approval, they are poised to solidify their influence over the company.
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