Religare Enterprises share price jumped 9% in trade on Feb 21: Here's why

Religare Enterprises share price: Religare Enterprises share price was buzzing in trade on the last day of the week, as the scrip rallied as much as 8.52 per cent to hit an intraday high of Rs 242 per share after the Burman family took control of the Delhi-based financial services company, marking the end of an 18-month takeover battle. The Burman family, now designated as the promoters of Religare Enterprises, announced their acquisition of a 25.2 per cent stake. 

 

"We are grateful to our regulators, shareholders and other stakeholders for their trust and confidence," the Burman family said.

 

The takeover saga began in September 2023 when the Burmans, holding a 25 per cent stake, made an open offer to acquire an additional 26 per cent. READ MORE

 

 

The offer, priced at Rs 235 per share, was opposed by Religare's senior management, led by Chairperson Rashmi Saluja, who argued that the valuation was too low. 

 

The matter escalated to several courts, including the Securities Appellate Tribunal (SAT). 

After the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) approved the offer in December, the Burmans launched the bid on January 27.

 

A counter-offer by Gaekwad emerged soon after, but he failed to deposit the required funds to back it, and after a Supreme Court ruling on February 7, the Burmans ultimately prevailed. This marked the end of the long-running battle, with the Burman family finally securing control of Religare Enterprises.

 

About Religare Enterprises

 

Religare Enterprises Limited (REL) is a diversified financial services group operating across three key sectors. The company provides a comprehensive range of financial services through its subsidiaries and affiliated entities, which include SME loans, affordable housing finance, health insurance, and retail broking.

 

The market capitalisation of Religare Enterprises is Rs 7,780 crore, according to BSE.

 

At 9:20 AM, Religare Enterprises share was trading 5.34 per cent higher at Rs 234.90 per share. In comparison, BSE Sensex was trading 0.10 per cent lower at 75,663.58 levels.