Religare Enterprises shares hit 52-week high; increase of more than 9 percent

New Delhi: Shares of Religare Enterprises rose over 9 per cent on Tuesday amid reports of the Reserve Bank of India approving the Burman family’s open offer to acquire additional 26 per cent stake in the company.

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

Company’s shares rose 4.50 percent 290.55 per share on NSE. It rose 9.5 percent to its 52-week high in intraday trade. 304.60 per share.

It jumped 4.09 percent on BSE 288.95 each. Later, it jumped 9.62 percent to its 52-week high 304.30 each.

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

The validity period of RBI approval is one year. The report said the approval of the deal is an important step towards the Burman family gaining majority control of Religare.

As of September 2024, the Burman family held 25.12 per cent stake in Religare through its subsidiaries MB Finmart, Puran Associates, VIC Enterprises and Milky Investment and Trading Company.

Puran Associates is owned by Anand Burman and Minnie Burman, while VC Burman owns VIC Enterprises, and MB Finmart is owned by Mohit Burman.

The Burman family has invested in various sectors such as insurance and FMCG.

In September last year, the Burman family had announced substantial acquisition of shares and an additional 26 per cent stake under Sebi’s takeover norms.

The move will increase the Burman family’s stake in Religare Enterprises Ltd to more than 56 per cent, making them majority owners in the financial services firm.

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

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

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

Subsequently, he increased his stake in the NBFC to more than 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 any modifications to the text.