Religare shares gain after Burmans of Dabur pick up 7.56% stake
On August 17, shares of Religare Enterprises experienced a 1 percent increase in their trading value during the early hours. This uptick followed the news that entities owned by the Burman family, who are associated with Dabur, had acquired an additional stake in Religare Enterprises.
The positive response from the market was evident on August 16, as the stock of Religare Enterprises reached its 52-week high, reaching Rs 242.55. This surge in share price occurred immediately following the announcement of the deal involving the Burman family-owned entities.
The acquisition of an additional stake by the Burman family in Religare Enterprises seems to have generated investor interest and positively influenced the stock’s performance. The news of such a significant move by a prominent family entity likely prompted market participants to reevaluate their perception of the company’s prospects, leading to increased trading activity and a rise in share price.
The market’s reaction underlines the potential impact of strategic ownership changes and investments on a company’s stock performance. The involvement of established entities like the Burman family can contribute to changes in investor sentiment and confidence, subsequently influencing the trajectory of share prices.
Entities linked to the Burman family, which is associated with Dabur India, made additional investments in Religare Enterprises through open market transactions. MB Finmart, VIC Enterprises, and Puran Associates, owned by the Burman family, acquired an extra 7.56 percent stake in Religare Enterprises. This acquisition involved purchasing 2.45 crore equity shares at an average price of Rs 217.95 per share.
The Burman family, known for their majority stake in Dabur India, already held a 14 percent stake in Religare Enterprises through the three mentioned entities as of June 2023. With this recent acquisition, their stake has increased to approximately 21 percent.
The deal saw foreign portfolio investor Investment Opportunities V Pte Limited acting as the seller, based on data from BSE bulk deals. Religare Enterprises is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
This strategic investment by the Burman family-owned entities suggests a strong interest in Religare Enterprises and its future prospects. Such ownership changes can have a notable impact on a company’s share performance and investor sentiment, as it reflects the confidence of established investors in the company’s potential.
Religare Enterprises, a financial services provider, recently released its financial results for a specified period. Here are the key highlights:
1. Standalone Results:
– The company reported a significant year-on-year decline of 57 percent in its standalone net loss.
– In terms of standalone revenue, there was an increase from Rs 7 crore to Rs 8 crore, demonstrating growth in this aspect.
2. Consolidated Results:
– On a consolidated basis, Religare Enterprises achieved notable growth in net sales, which grew by 35.15 percent year-on-year, reaching Rs 1,284.63 crore for the specified period.
– The company’s net profit also saw substantial growth, experiencing a 138.91 percent increase year-on-year for the quarter ended June 2023.
– The earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 21.45 percent to Rs 155.84 crore.
These financial results indicate a mixed performance for Religare Enterprises, with declines in standalone net loss coupled with growth in both consolidated net sales and net profit. The improvement in consolidated net profit reflects the company’s ability to capitalize on growth opportunities and manage its operations more efficiently.
The positive trends in consolidated net sales and net profit, along with the growth in EBITDA, highlight the company’s potential to generate value and profitability across its various business segments. This information provides insights into Religare Enterprises’ financial performance and its capacity to adapt and thrive within its industry.\
Religare Enterprises, headquartered in Mumbai, operates as a provider of diversified financial services across a widespread network that encompasses more than 400 cities. The company’s range of services is comprehensive and encompasses various aspects of the financial sector. These services include:
1. Loans to SMEs: Religare Enterprises offers financial support and lending solutions to Small and Medium Enterprises (SMEs). These loans can assist SMEs in expanding their operations, managing working capital, and achieving their growth objectives.
2. Affordable Housing Finance: The company provides financing options and solutions for affordable housing projects. This initiative aims to address the housing needs of the population by making home ownership more accessible and affordable.
3. Health Insurance: Religare Enterprises extends health insurance services, catering to individuals and families. Health insurance coverage offers financial protection against medical expenses and provides access to healthcare services.
4. Retail Broking: The company offers retail broking services, enabling individuals to participate in financial markets by trading stocks, commodities, currencies, and other financial instruments. This service provides investors with opportunities for capital growth and portfolio diversification.
Religare Enterprises’ comprehensive suite of financial services demonstrates its commitment to serving diverse segments of the population and catering to various financial needs. The company’s presence in numerous cities reflects its efforts to provide accessible financial solutions to a wide range of clients across different geographic regions. Through its offerings, Religare Enterprises aims to facilitate financial inclusion, promote economic growth, and support individuals and businesses in achieving their financial objectives.
