Religare Enterprises rallies on stake sale to US bank

Customers Bancorp Inc agrees to invest $51 million (around Rs 305 crore) in various securities through a combination of primary and secondary market transactions.

Image
SI Reporter Mumbai
Last Updated : Jun 27 2013 | 10:48 AM IST
Religare Enterprises has rallied 5% to Rs 355, extending its previous day’s 4% gain, after the company said US-based Customers Bancorp Inc agreed to invest $51 million (around Rs 305 crore) in various securities through a combination of primary and secondary market transactions.

The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.

“Promoters are selling the shares as part of their 22% divestment to bring down their shareholding to 49% to qualify Religare Enterprises to setup non-operative financial holding company (NOFHC) as per Reserve Bank of India guidelines for licensing of new banks in the private sector issued on Feb 22, 2013,” Religare Enterprises said in a regulatory filing.

The stock opened at Rs 355 and hit a high of Rs 366 on BSE. A combined 134,516 shares have changed hands on the counter till 0958 hours on BSE and NSE.

More From This Section

First Published: Jun 27 2013 | 9:59 AM IST

Next Story