Religare Enterprises gains on plans to seek banking licence

Religare Enterprises is trading higher by 3% at Rs 324 on the Bombay Stock Exchange (BSE) after the financial services firm said the promoters of the company will sell 22.75% stake in the company to meet the Reserve Bank of India's (RBI) eligibility criteria for applying for a banking licence.

“The promoters agreed to dilute their shareholding to 49% in the company to enable Religare Enterprises to qualify for applying for banking license under guidelines for licensing of new banks in the private sector,” Religare Enterprises said in a statement.

The promoters have appointed Axis Capital Ltd as advisors for the proposed stake sale. Currently, the promoters held 71.75% stake in the company.

Earlier this month, RBI issued clarifications on its new bank licensing norms that stated private players aspiring to enter banking space needs to create a non-operative financial holding company (NOFHC).

"The requirement is that not less than 51% of the voting equity shares of the NOFHC shall be held by companies in the promoter group, in which the public hold not less than 51% of the voting equity of such companies," the central bank said.

The stock opened at Rs 321 and hit a high of Rs 330 on BSE. A combined around 25,000 shares changed hands on the counter till 0930 hours on BSE and NSE.