Religare Enterprises surges 10% on stake sale in subsidiary to TCG Advisory

Between July 5 and today, the stock has rallied 51% from a level of Rs 28.50 apiece. In comparison, the S&P BSE Sensex has lost 2% during the same period

Market News: Shares of Religare Enterprises were locked in the 10 per cent upper circuit at Rs 42.95 per share on the BSE on Thursday after the company announced its plan to sell Religare Finvest to TCG advisory for an undisclosed amount.

Between July 5 and today, the stock has rallied 51 per cent from a level of Rs 28.50 apiece. In comparison, the S&P BSE Sensex has lost 2 per cent during the same period.

The trading volumes on the counter nearly doubled with a combined 5,51,284 shares changing hands till 09:23 am. There were pending buy orders for 2,13,309 shares on the NSE and BSE, exchange data show.

“The company has entered into a binding term sheet on July 10, with TCG Advisory Services, Religare Finvest (RFL) and Religare Housing Development Finance Corporation (RHDFCL), whereby it will divest its entire stake in RFL, a subsidiary of the company, to TCG Advisory Services or any of its affiliates,” Religare Enterprises said in a regulatory filing.

The financial services company reported total revenue of Rs 796 crore for the financial year ended March 31, 2019 (FY19) and its net worth/equity was Rs 947 crore as at March 31, 2019 translating to approximately 33.09 per cent of consolidated revenue and approximately 114 per cent of consolidated net worth/equity attributable to owners of the company as on March 31, 2019, it said. Read More

Business Standard