CALCULATE YOUR SIP RETURNS

Religare Hits 52-Week High as RBI Clears Burman Family’s Stake Acquisition

Updated on: Dec 10, 2024, 4:41 PM IST
Religare shares surged nearly 10% after RBI approved the Burman family’s bid to acquire an additional 26% stake, boosting investor optimism and trading activity.
Religare Hits 52-Week High as RBI Clears Burman Family’s Stake Acquisition
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Religare Enterprises’ shares jumped nearly 10% on December 10, 2024, after the Reserve Bank of India (RBI) approved the Burman family’s open offer to acquire an additional 26% stake in the company.

Stock Performance

Religare Enterprises share price rose 3.94% to ₹289 per share on the NSE at 1 PM and touched a 52-week high of ₹304.60 during intraday trading, marking a 9.5% surge. The stock has been on an upward trend for the last 8 days, gaining 17.12% in this period. It opened with a 3.52% jump today.

Trading activity was robust, with 2.40 lakh shares exchanging hands on the BSE, generating a turnover of ₹7.08 crore. On the NSE, over 90 lakh shares were traded. The company, classified as a large-cap, has a market capitalisation of ₹9,576.91 crore.

RBI Approval with Conditions

The RBI’s approval for the Burman family’s acquisition comes with specific conditions. The current management structure must remain intact, and no new directors can be appointed at this stage.

The regulatory filing outlined that any proposed directors must be vetted to ensure they are “fit and proper” before submission for approval. The RBI approval is valid for 1 year, and the Burman family must complete the acquisition within this period. If their shareholding drops below 26% after the acquisition, RBI’s prior approval will be required to raise it back to 26% or more.

Burman Family’s Current Stake and Expansion Plans

As of September 2024, the Burman family, through affiliates such as M B Finmart, Puran Associates, VIC Enterprises, and Milky Investment & Trading Company, holds a 25.12% stake in Religare.

The family, known for its diverse investments in sectors like insurance and FMCG, announced in September 2023 its intention to acquire an additional 26% stake in Religare under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) regulations.

This move positions the Burman family to strengthen its presence in Religare and drive its future growth.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 10, 2024, 1:58 PM IST

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers