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  5. Religare Enterprises shares jump 10%, hit 52-week high; here is why the stock rallied

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Religare Enterprises shares jump 10%, hit 52-week high; here is why the stock rallied

Upstox
By Upstox News Desk

2 min read | Updated on December 10, 2024, 11:42 IST

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SUMMARY

Religare Enterprises share price: Reports said that the Reserve Bank of India (RBI) has approved the plan of the Burman family to make an open offer for an additional 26% stake in the company. This paves the way for a possible resolution of the tussle for control over the non-banking finance company (NBFC).

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RELIGARE
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REL management and the Burman family were locked in a pitched battle for the acquisition of the financial services firm. 

REL management and the Burman family were locked in a pitched battle for the acquisition of the financial services firm. 

Religare Enterprises share price: Shares of Religare Enterprises jumped as much as 9.6% to hit a 52-week high of ₹304.30 apiece on the BSE on Tuesday, December 10, amid reports that the Reserve Bank of India (RBI) has approved the plan of the Burman family to make an open offer for an additional 26% stake in the company. 

This paves the way for a possible resolution of the tussle for control over the non-banking finance company (NBFC).

REL management and the Burman family were locked in a pitched battle for the acquisition of the financial services firm. 

Burmans, who hold around 25% of REL through four entities—MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment and Trading Co—announced an open offer on September 25, 2023, to acquire a 26% stake from the public shareholders, said a PTI report published in May 2024.

The ₹2,116 crore open offer plan sparked a row between REL management and the Burmans, with both sides trading charges.

Despite the battle, executive chairperson Rashmi Saluja, in an exclusive interview with PTI in May this year, said the performance of REL has improved, and it is also ratified by rating agencies by improving ratings.

"Regulators have been completely satisfied, executive chairperson Rashmi Saluja said, adding that the morale of employees is also high and there has been hardly any attrition in the company". 

Religare Enterprises Q2 FY25 Results

Religare Enterprises reported a 70% jump in consolidated net profit to ₹68.49 crore for the second quarter ended September 2024.

The financial services firm had a consolidated net profit of ₹40.35 crore in the July-September quarter of 2023-24.

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Its total revenue stood at ₹1,971 crore during the quarter under review, up from ₹1,586 crore in the corresponding period of the last year.

In a regulatory filing, Religare Enterprises further said that its group CFO, Nitin Aggarwal, will cease to be associated with the company with effect from the close of business hours on November 12, 2024.

(With inputs from PTI)

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