Religare Enterprises rose 0.18% to Rs 338.90 at 11:08 IST on BSE after the company said it plans to acquire Macquarie's stake in its wealth management joint venture - Religare Macquarie Wealth Management.
The announcement was made after market hours on Monday, 2 September 2013.
Meanwhile, the S&P BSE Sensex was down 138.04 points or 0.73% at 18,748.09.
On BSE, 16,000 shares were traded in the counter as against average daily volume of 83,680 shares in the past one quarter.
The stock was volatile. The stock rose as much as 1.98% at the day's high of Rs 345 so far during the day. The stock lost as much as 0.57% at the day's low of Rs 336.35 so far during the day. The stock had hit a 52-week high of Rs 366 on 27 June 2013. The stock had hit a record low of Rs 250.40 on 24 May 2013.
The stock had outperformed the market over the past one month till 2 September 2013, surging 9.13% compared with the Sensex's 1.45% fall. The scrip had also outperformed the market in past one quarter, jumping 20.24% as against Sensex's 4.42% fall.
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The mid-cap company has equity capital of Rs 149.60 crore. Face value per share is Rs 10.
Religare Macquarie Wealth Management is an equal partnership joint venture (JV) with Macquarie formed in 2007 to serve the fast growing Indian High Net Worth individuals (HNI) client base, leveraging Religare's local knowledge and Macquarie's global expertise. The venture has currently close to Rs 2800 crore of Assets Under Management (as on 31 March 2013) servicing over 4800 clients through its committed team of professional wealth advisors.
Post completion of the transaction and necessary formalities, the legal entity will be rechristened as Religare Wealth Management (RWML) and will form a part of the broader Capital Markets Business of Religare group. There will be no change in the management team and the team will report to Basab Mitra, CEO -Capital Markets and Wealth Management for Religare group, Religare Enterprises said in a statement.
Commenting on the development, Shachindra Nath, Group CEO, Religare Enterprises said, "The partnership with Macquarie has been fruitful. Macquarie has decided to exit the wealth management business from Asia including India and this has created for us the opportunity to further consolidate our financial services platform in India. We see this new structure as a great growth enabler for the business by bringing together the broader Religare ecosystem including distribution, pan- India client base and research capabilities under a common unified umbrella."
Religare Enterprises reported a consolidated net loss of Rs 90.27 crore in Q1 June 2013, as against net profit of Rs 24.24 crore in Q1 June 2012. Total income declined 6.2% to Rs 798.59 crore in Q1 June 2013 over Q1 June 2012.
Religare Enterprises (REL) is one of India's leading diversified financial services groups. REL offers an integrated suite of financial services including asset management, life and health insurance, lending, broking, investment banking, and wealth management.
Religare is also building an Asia & emerging markets focused Institutional equities & Investment Banking business and a multi-boutique global asset management platform to tap the broader opportunities offered by the most promising emerging markets around the world.
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