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Religare Enterprises hits 10% upper circuit after it announces stake sale in subsidiary

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Religare Enterprises hits 10% upper circuit after it announces stake sale in subsidiary

Religare Enterprises hits 10% upper circuit after it announces stake sale in subsidiary
Shares of Religare Enterprises were locked in 10 percent upper circuit on Thursday after the company announced its plan to divest its entire stake in Religare Finvest to TCG advisory for an undisclosed amount.
In the last one week, the stock has rallied 48.6 percent from Rs 28.90 apiece to Rs 42.95 per share on the BSE. In comparison, the S&P BSE Sensex has lost 3 percent during the same period.
“The company has entered into a binding term sheet with TCG Advisory Services, Religare Finvest (RFL) and Religare Housing Development Finance Corporation (RHDFCL), whereby the company 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.
Religare Finvest 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 on March 31, 2019 translating to approximately 33.09 percent of consolidated revenue and approximately 114 percent of consolidated net worth/equity attributable to owners of the company as on March 31, 2019, the filing said.
The consideration amount has not been disclosed in terms of the confidentiality obligations under the term sheet. The transaction will be subject to necessary statutory and regulatory approvals and fulfilment of other conditions.
 
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