 "Religare")
Shares of Religare Enterprises plummeted 7.3 per cent to Rs 252 apiece on the BSE in Monday's intraday trade after the company said the Burman family has made an open offer to acquire a 26-per cent stake in the company.
"The acquirers made this offer to the public shareholders of the target company to acquire up to 90,042,541 equity shares, constituting 26 per cent of the expanded voting share capital, at a price of Rs 235 per offer share, totalling Rs 21,159,997,135 (or up to Rs 2,116 crore/$255.03 million, assuming full acceptance), subject to the terms and conditions set out in this public announcement and in the detailed public statement and letter of offer that are proposed to be issued in accordance with Sebi regulations," Religare Enterprises said in an exchange filing. CHECK HERE
The aforesaid acquirers include Puran Associates, Vic Enterprises, MB Finmart, and Milky Investment and Trading Company -- all of which are part of the Burman Group.
At 9:34 AM, the shares of the financial services company was quoting 3 per cent lower at Rs 264.8 per share as against unchanged BSE Sensex. A combined 1.9 million shares have, thus far, changed hands on the NSE and BSE.
In August, Mohit Burman, chairman of Dabur Ltd, told news agency PTI that the Burman family views itself as a long-term investor in Religare and sees the company as a unique financial services platform.
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"We are long-term investors in Religare Enterprises. The family has invested in Religare for the past five years, and we felt this was the right time to increase our stake," Mohit, a member of the Burman family, told PTI. READ MORE
Religare Enterprises Limited (REL) is a diversified financial services group, and offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Affordable Housing Finance, Health Insurance and Retail Broking.
In the April-June quarter of FY24 (Q1-FY24),Religare Enterprises narrowed its standalone net loss to Rs 6 crore from a loss of Rs 14 crore in the year-ago period.
Total revenue increased to Rs 8 crore during the quarter as against Rs 7 crore a year ago, Total expenses were also nearly unchanged at Rs 20.48 crore in Q1-FY24.
On a consolidated basis, however, the company posted a net profit of Rs 93 crore as against a loss of Rs 76 crore in the same quarter a year ago.
Tech View
Outlook: Bullish
Target: Rs 277
The stock of Religare Enterprises staged a smart intraday recovery on Monday, recouping more than half the losses. This recovery has helped the stock form a 'Hammer' candlestick on the daily charts in the intraday trade, suggesting strong presence of buyers at lower levels.
For now, the stock remains in a bullish momentum as suggested by moving averages' action. The stock's immeidate resistance is at Rs 277 per share (upper end of the Bollinger Band), while support is present at 245 (20-DMA).
