Religare Enterprises rose 2.27% to Rs 255 at 11:16 IST on BSE after the company said it will merge several of its entities with itself for better synergy and simplifying corporate structuring.
The announcement was made after market hours yesterday, 27 December 2016.Meanwhile, the BSE Sensex was up 84.56 points, or 0.32%, to 26,298.
On the BSE, so far 1,899 shares were traded in the counter, compared with average daily volumes of 4,080 shares in the past one quarter. The stock had hit a high of Rs 258.50 and a low of Rs 254 so far during the day.
The stock hit a 52-week high of Rs 319 on 30 December 2015. The stock hit a 52-week low of Rs 221.05 on 15 November 2016. The stock had underperformed the market over the past 30 days till 27 December 2016, falling 7.15% compared with the 0.52% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 5.69% as against Sensex's 7.35% decline.
The mid-cap company has equity capital of Rs 178.33 crore. Face value per share is Rs 10.
The board of Religare Enterprises (REL) has approved a plan to merge 11 of its subsidiaries with REL. The proposed structure is aimed at streamlining the organization and is designed to allow REL to achieve its objective of following a focused, growth oriented strategy.
The units to be merged are: Religare Securities (excluding its broking business), Religare Commodity Broking, RGAM Investment Advisors, Religare Venture Capital, Religare Arts Investment Management, Religare Capital Finance, RGAM Capital India, Religare Investment Advisors, Religare Support Services, Religare Arts Initiative and Religare Capital Markets (India).
The new structure will reduce operational and administrative costs of maintaining multiple legal entities and focus resources on core businesses. The consolidation will not have an impact on the company's shareholding pattern.
Religare Enterprises reported net loss of Rs 39.54 crore in Q2 September 2016 as against net loss of Rs 13.90 crore in Q2 September 2015. Net sales declined 94.8% to Rs 0.27 crore in Q2 September 2016 over Q2 September 2015.
Religare Enterprises (REL) is the holding company for one of India's leading diversified financial services groups. REL offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, affordable housing finance, health insurance, capital markets and wealth management.
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