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Shares of Religare Enterprises surged nearly 10% after the RBI approved the Burman family’s open offer to acquire stake
Religare Enterprises Shares
Shares of Religare Enterprises surged nearly 10% on December 10 after the Reserve Bank of India (RBI) approved the Burman family’s open offer to acquire an additional 26% stake in the company.
By 1 PM, Religare’s stock had risen 3.94% to ₹289 per share on the NSE. During intraday trading, the stock hit a 52-week high of ₹304.60, marking a 9.5% surge.
The stock has gained 17.12% over the last 8 days and opened today with a 3.52% increase.
In total, 2.4 lakh shares of Religare were traded today, generating a turnover of ₹7.08 crore. The company has a market capitalization of ₹9,576.91 crore, according to the BSE. More than 90 lakh shares were traded on the NSE during the day.
According to an exchange filing, the RBI’s approval comes with certain conditions, including maintaining the current management structure and refraining from appointing new directors at this stage.
“The request for management changes or the appointment of four proposed directors (Abhay Agarwal, Arjun Lamba, Ramanathan Gurumurthy, and Suresh Mahalingam) has not been approved at this stage. The NBFC is advised to submit the names of the proposed directors along with the Board resolution, ensuring they are ‘fit and proper’,” the filing stated.
The RBI’s approval is valid for one year. “If the acquirers do not acquire the proposed shareholding within a year, this approval will be canceled. Additionally, if the acquirers’ shareholding falls below 26% after the proposed change, prior RBI approval will be required to increase their stake back to 26% or more,” the filing added.
As of September 2024, the Burman family, through its affiliates – M B Finmart, Puran Associates, VIC Enterprises, and Milky Investment & Trading Company – held a 25.12% stake in Religare.
The Burman family has diversified investments in sectors such as insurance and FMCG.
In September 2023, the Burman family announced plans to acquire an additional 26% stake under the Securities and Exchange Board of India’s (SEBI) Substantial Acquisition of Shares and Takeovers (SAST) regulations.
