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RBI okays Burman Family's open offer for Religare Enterprises; stock up 10%

Religare Enterprises share price hit a 52-week high of Rs 304.30 in the intraday trade, surging 25 per cent thus far in the month of December

Religare

SI Reporter Mumbai

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Religare Enterprises share price hit a 52-week high of Rs 304.30, surging 10 per cent on the BSE in Tuesday's intraday trade, after the Reserve Bank of India (RBI) approved Burman family's plan to raise their stake in the company from 25 per cent to 51 per cent via an open offer.
 
The stock surpassed its previous high of Rs 297, which it touched on October 1, 2024. Thus far in the month of December, Religare Enterprises share price has rallied 25 per cent. At 01:31 PM, the stock was trading 4.5 per cent higher at Rs 290.15 as compared to 0.24 per cent decline in the BSE Sensex.
 
 
The approval comes with conditions, such as maintaining the current corporate structure, and consolidation of non banking finance company (NBFC) with Burman group. The approval is subject to compliance to Master Direction- Reserve Bank of India (Non-Banking Financial Company- Scale based Regulation) Direction, 2023, and other statues, regulations and guidelines as applicable
 
"The acquirers are advised to consolidate the NBFCs in the resulting structure/group (both Burman and Religare group) at the earliest and not later than March 31 , 2026. In this regard, the acquirers are advised to submit a concrete and specific consolidation plan, with specific timelines, duly supported by Board Resolutions from each of the NBFCs within the groups, within 90 days from the date of this communication," RBI said in a letter sent to Religare Enterprises.  CLICK HERE FOR FULL DETAILS
 
The Burmans, who began acquiring stakes in 2018, have faced opposition from Religare's management and regulatory scrutiny. This development marks a major step toward resolving control disputes over the NBFC, ICICI Securities said in a note.
 
Religare Enterprises, a Core Investment Company (CIC) registered with RBI, is a diversified financial services company. Religare Enterprises 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 Banking.
 
Religare Broking, a wholly owned subsidiary of Religare Enterprises, provides a comprehensive range of services to retail clients. The broking business offers a full range of broking services such as equities, commodities, and currencies, depository participant services, bonds & mutual fund distribution, besides selling insurance policies as an IRDA registered Corporate Agent and offering research capabilities to its customers.
 
Increased retail participation is being driven by a revival in primary market activity, improved secondary market returns, and heightened interest from younger demographics. Technological advancements, such as AI and machine learning, are enabling personalized services, improved efficiency, and reduced costs through digital platforms and mobile trading apps, the company had said in its FY24 annual report filed on December 7.
   

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First Published: Dec 10 2024 | 1:57 PM IST

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