Shares of financial services firm Religare Enterprises Ltd dropped as much as 3.5 percent on Thursday, a day after the Burman family raised its stake in the company.

Share Market Live

NSE

In the previous session, the Religare Enterprises stock had closed 6 percent higher after a huge block deal was executed on Wednesday. Sources privy to the deal had told CNBC-TV18 that the Burman family was one of the buyers in the block deal.

On Thursday, the BSE block deals data confirmed that Burmans-owned MB Finmart Pvt. Ltd, VIC Enterprises Pvt. Ltd and Puran Associates Pvt. Ltd (promoters of Dabur India) had purchased 2.45 crore equity shares in Religare Enterprises on Wednesday through open market transactions at an average price of Rs 217.95 per share.

This translates into an additional 7.56 percent stake in Religare Enterprises for the Burman family over and above the 14 percent stake held by them, as of June 2023.

Meanwhile, the BSE data identified foreign portfolio investor, Investment Opportunities V Pte Ltd, as the seller in this block deal.

Reacting to the development, shares of Religare Enterprises fell as much as 3.5 percent on Thursday to hit an intra-day low of Rs 225.20 apiece during the noon session on BSE.

The Burman family had last raised its stake in Religare Enterprises in June 2021 from 11 percent to 14 percent by investing in the company’s preferential issue.

Mohit Burman, chairman of Dabur, said, "We are long-term investors in Religare Enterprises. The family has been invested in Religare for the past five years and we felt that this was an opportune moment to increase our stake in the company.

The subsidiaries of the company are doing very well, especially in the health insurance and retail broking business, and we believe that these businesses are on a strong footing. Ably guided, they should do well going forward. We also view Religare as a unique financial services platform."

Last week, Religare Enterprises reported a narrowing of its standalone net loss to Rs 6 crore for the quarter ended June 2023, compared with a loss of Rs 14 crore in the year-ago period.

The company had said that its total revenue increased to Rs 8 crore during the June quarter compared with Rs 7 crore a year ago.

First Published:Aug 17, 2023 4:07 PM IST