Religare Enterprises jumps 18% ahead of board meeting

NEW DELHI: Shares of surged as much as 18 per cent on Friday after the company said its board would consider raising funds in a meeting on June 8.

According to reports, the Burman Family of Dabur Group has shown intentions to increase its stake in the company. The family owes a little less than 10 per cent stake in the NBFC.

Shares of Religare Enterprises gained as much as 18 per cent, but later pared some gains to trade at Rs 137.25.
The Burmans own a stake in Religare via three family investment vehicles - Puran Associates Pvt Ltd, Milky Investment and Trading Company and MB Pvt Ltd.

Shares of Religare Enterprises have delivered up 350 per cent return in the last one year. The counter has surged to Rs 129.70, its new 52-week high on Tuesday, from Rs 29.20 in June 2020.

The rally in the counter is strongly supported by the buzz related to its health insurance arm Care Health Insurance. Religare Enterprises holds over 70 per cent stake in the health insurer.

Care Health, erstwhile Religare Health, is planning an IPO of around Rs 1,200-1,500 crore. The company is valued around Rs 13,000-15,000 crore. According to grey market sources, the management may take a call on this in its board meeting.