Religare Enterprises’ stock hit 52-week high; surges over 9 pc

New Delhi, Shares of Religare Enterprises surged more than 9 per cent on the bourses on Tuesday amid reports that the Reserve Bank of India has cleared Burman family’s open offer to acquire an additional 26 per cent stake in the company.

According to reports, the RBI approval comes with conditions, including maintaining the existing management structure and not appointing new directors at this stage.

The scrip of the company climbed 4.50 per cent to ₹290.55 apiece on NSE. In intraday trade, it surged 9.5 per cent to hit its 52-week high of ₹304.60 per share.

On the BSE, it jumped 4.09 per cent to ₹288.95 apiece. Later, it bounced 9.62 per cent to hit its 52-week high of ₹304.30 apiece.

Meanwhile, the 30-share BSE Sensex rose 91.20 points or 0.11 per cent to 81,599.66, while NSE Nifty went up 11.85 points or 0.05 per cent to 24,630.85.

The RBI approval has a validity period of one year. While the clearance of the deal is a significant step for the Burman family towards acquiring majority control of Religare, the reports said.

As of September 2024, the Burman family through its affiliates M B Finmart, Puran Associates, VIC Enterprises and Milky Investment & Trading Company owned a 25.12 per cent holding in Religare.

Puran Associates is owned by Anand Burman and Minnie Burman, while V C Burman owns VIC Enterprises, and M B Finmart is owned by Mohit Burman.

Burman family has investments across various sectors such as insurance and FMCG.

In September last year, Burman family announced to acquire an additional 26 per cent stake under Sebi’s Substantial Acquisition of Shares and Takeovers norms.

This move will increase the holding of Burman family in Religare Enterprises Ltd and will surpass 56 per cent, enabling them to become majority owners in the financial services firm.

In January this year, the Competition Commission of India approved the acquisition of 31.27 per cent of additional stake in Religare Enterprises by four entities of Burman family.

The regulator allowed the Burman family to acquire REL’s 5.27 per cent through stock market purchase and another 26 per cent through an open offer.

In 2018, the Burman family initially acquired warrants equivalent to a 10 per cent holding in REL.

Subsequently, they increased their stake in the NBFC to over 25 per cent in phases by September 2023, automatically triggering the Sebi-mandated open offer.

This article was generated from an automated news agency feed without modifications to text.