Religare Enterprises on Thursday said it will sell its entire stake in non-banking financial company (NBFC) arm Religare Finvest Ltd (RFL) and RFL's housing finance subsidiary RHDFC to TCG group. The company, however, did not disclose the financial transaction involved in the deal.

"REL has entered into a binding term sheet with TCG Advisory Services (TCG) for sale of its entire stake in its NBFC arm, RFL and RFL's subsidiary Religare Housing Development Finance Corporation (RHDFC)," Religare Enterprises Ltd (REL) said in a filing to the Bombay Stock Exchange.

The binding term sheet was signed on July 10, 2019.

"TCG group would also acquire indirect interest of the company in RHDFCL, which is a subsidiary of RFL," REL said in the exchange filing.

The company stated that the above transaction is subjected to requisite approvals and fulfilment of other conditions precedent and is expected to consummate before December 31, 2019, which date may be further extended by the parties mutually.

The diversified financial services group reportedly said the deal will  not only enhance value of Religare Enterprises shareholders, but also strengthen Religare Finvest and Religare Home Loans by aiding implementation of the ongoing debt resolution process of the NBFC.

Commenting on the development, RHDFC Managing Director Sanjay Palve, who is also the chief executive officer of RFL, said "This is an inflection point in the journey of Religare Group which galvanises it towards a new phase of growth."

"We are confident that through this transaction we will be able to capitalise both RFL and RHDFC to achieve growth in the high potential affordable housing segment," he added.

Following the announcement, shares of Religare Enterprises surged 9.99 percent to close at Rs 42.95 apiece on the Bombay Stock Exchange on Thursday.

Edited by Chitranjan Kumar