The company’s share price rose by 5.6% on Wednesday from its previous close of ₹217.05 to an intraday high of ₹229.25 per share after CCI approved the Burman family’s acquisition of a 5.27% stake in the business through the open market.
As per the CCI report, entities connected to the Burman family, who own Dabur India, have been granted permission by the Competition Commission of India to purchase a 5.27% interest in Religare Enterprises.
With a 21.17% stake, the Burmans are already the largest shareholders. They intend to make an open offer for up to 26% of the total voting share capital and purchase the additional stake through open market purchases.
In September 2023, they announced their intention to acquire the stake for ₹407 crore, which triggered the open offer. The Burmans will own more than 53% of Religare if they succeed. The approval is just the first step; RBI, IRDAI, and SEBI clearances are still needed.
Puran Associates Private Limited, M.B. Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company are the Acquirers.
Looking at the financials of the company the net revenue of the company rose by 36% from ₹1,164 crores in Q2FY23 to ₹1,584 crores in Q2FY24 and the net profit of the company rose by 122% from the net loss of ₹177 crores in Q2FY23 to ₹40 crores in Q2FY23.
Religare Enterprise Ltd is a small-cap company with a market capitalization of ₹7,470 crores, the share price of the company rose by 33% last year.
Religare Enterprise Ltd.’s shareholding as of December shows that, among institutional investors, domestic institutional investors held 7.75%, foreign institutional investors held 9.89%, and the general public held 82.36%.
Religare Enterprise Ltd, established in 1984, is a diversified financial services company with subsidiaries operating throughout India. The company offers loans to SMEs, affordable housing finance, health insurance, and retail broking.
Written by Sriram KV
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