Religare Enterprises shares rise 5% in early trade; here’s why

Shares of Religare Enterprises Ltd gained over 5% in early trade today after Competition Commission of India allowed buying of 5.27 percent of Religare Enterprises by entities linked to the Burman family, which owns FMCG major Dabur India. Religare Enterprises stock gained 5.62% to Rs 229.25 against the previous close of Rs 217.05 on BSE. 

Market cap of Religare Enterprises rose to Rs 7497 crore. The stock opened higher at Rs 222.95. Religare Enterprises stock has gained 4.94% this year and risen 33.88% in the last one year. The stock delivered multibagger returns of 812% in five years. Total 1.26 lakh shares of the firm changed hands amounting to a turnover of Rs 2.86 crore on BSE.         

The stock has a beta of 0.3, indicating low volatility in a year.    

In terms of technicals, the relative strength index (RSI) of Religare Enterprises stock stands at 49.7, signaling it's trading neither in the overbought nor in the oversold zone. Religare Enterprises stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Entities linked to the Burman Family such as Puran Associates Pvt Ltd, M.B. Finmart Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment and Trading Company will buy stake in Religare Enterprises.  

The proposed combination envisages the acquisition of 5.27 percent of the total issued and outstanding equity share capital of Religare "through open market purchases", and an open offer for up to "26 percent of the total expanded voting share capital", the commission noted. 

The Burman family is the single-largest shareholder in Religare, owning 21.17% stake in the company as of December 31, 2023. 

In September 2023, the Dabur owners made an offer to expand their voting share capital to 26 percent, by acquiring the additional stake for Rs 2,116 crore, at a rate of Rs 235 per share. 

Also read: Tanla Platforms shares fall over 6% post Q3 earnings; check details