Religare Enterprises surges 5% after Edelweiss buys its securities biz

Shares of Religare Enterprises hit its upper circuit of 5% at Rs 73.15, while those of Edelweiss Financial Services rose 2.54% to Rs 298.65 in intra-day trade after Edelweiss Financial Services on Wednesday said its wealth management arm will acquire Religare's securities business for an undisclosed sum.

"Edelweiss and Religare today announced the acquisition by Edelweiss Wealth Management of Religare's securities business, which includes securities and commodities broking, and depository participant services," the company said in a regulatory filing.

The company said this acquisition will help it expand its geographical reach and distribution footprint and almost treble the client base.

"Edelweiss will also take on the pan-India distribution of around 1,250 points of presence, including over 90 branches, over 1 million clients and the employees of the business," it added.

Edelweiss said it has consistently looked at synergistic growth opportunities and expansion, especially for its asset and wealth management businesses.

In the past, Edelweiss Wealth Management had acquired Rooshnil Securities (2001) and Anagram Capital Ltd (2010).