Religare Enterprises Surges 8.5% as Burman Family Acquires Controlling Stake
Stock Jumps Amidst Takeover Completion
Religare Enterprises Surges : Shares of Religare Enterprises Limited (REL) soared 8.5% on February 21, 2025, following the official takeover by the Burman family, marking the end of an intense 18-month-long battle for control. The move cements the Burman family as the promoters of the Delhi-based financial services firm, a transition that has garnered significant attention in the stock market.
The Burman family, who also owns Dabur India, expressed gratitude to regulators, shareholders, and stakeholders for their trust and support in facilitating this acquisition. Their latest shareholding stands at 8.32 crore equity shares, representing 25.16% of REL’s total paid-up capital.
Burman Family’s Vision for REL
With the new leadership in place, the Burman Group has assured stakeholders of a stable, transparent, and growth-driven future for Religare. A spokesperson from the Burman family stated:
“Our immediate priority is to instill stability, strengthen governance, and drive sustainable growth at the company. Governance, trust, and integrity will remain at the core of our vision as we steer REL towards a future defined by resilience and stakeholder value maximization.”
Breakdown of the Open Offer
According to regulatory filings, the Burman family successfully completed the open offer on February 17, 2025, in compliance with SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011. Here’s a detailed breakdown of the transactions leading up to this takeover:
| Date | Shares Acquired | % of Paid-up Capital |
|---|---|---|
| January 31, 2024 | 1.32 crore | 3.99% |
| February 17, 2025 | 2.31 lakh | 0.07% |
| Total Post-Acquisition Holding | 8.32 crore | 25.16% |
The takeover was executed through various family-owned entities, including:
- M.B. Finmart Private Limited (MFPL)
- Puran Associates Private Limited (PAPL)
- VIC Enterprises Private Limited (VIC)
- Milky Investment & Trading Company (MITC)
The Burman family initially launched an open offer to acquire up to 9 crore equity shares (26% stake) from public shareholders. The final holding after the completion of the offer ensures their status as the official promoters of REL.
Stock Price Trend & Market Reaction
Religare Enterprises witnessed a sharp surge, hitting an intraday high of ₹242 on February 21. However, the stock remains 24% below its 52-week high of ₹319.90, recorded in December 2024.
Meanwhile, it has rebounded by over 20% from its 52-week low of ₹201, registered in June 2024. Despite the recent surge, the stock has faced some turbulence:
- Down 5% in the last year
- Lost over 1% in February so far
- Declined over 13% in January 2025
Financial Performance & Key Ratios
A deeper look into Religare Enterprises’ financials reveals a challenging yet improving landscape. Below is a snapshot of the company’s key financial ratios and market metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹89,108 Cr. |
| Current Price | ₹106 |
| 52-Week High / Low | ₹155 / ₹103 |
| Stock P/E | 258 |
| Book Value | ₹ – |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 7.60% |
| Return on Equity (ROE) | 6.20% |
| Face Value | ₹10.0 |
| Promoter Holding | 89.0% |
| Debt to Equity | 2.22 |
| Price to Earnings Ratio (P/E) | 258 |
| Pledged Percentage | 0.00% |
| Quarter-on-Quarter Profit Growth | 78.8% |
| Quarterly Profit Variation | 18.0% |
| Industry P/E | 29.6 |
| Relative Strength Index (RSI) | 35.6 |
| Earnings Per Share (EPS) | ₹0.60 |
| No. of Equity Shares | 843 Cr. |
| PEG Ratio | – |
| 200-Day Moving Average (DMA 200) | ₹121 |
| Free Cash Flow (Last 3 Years) | ₹ – |
| Free Cash Flow (Current) | ₹ -6,884 Cr. |
| Total Debt | ₹13,857 Cr. |
What’s Next for Religare Enterprises?
The completion of the Burman family’s acquisition is expected to bring a new era of stability and governance for Religare Enterprises. However, certain challenges remain, including:
✅ Improving profitability and financial performance
✅ Managing high debt levels
✅ Enhancing investor confidence through governance reforms
With the Burman family’s strong financial backing and strategic direction, analysts expect Religare to focus on long-term sustainable growth, improving corporate governance, and maximizing stakeholder value.
Final Thoughts
The takeover of Religare Enterprises by the Burman family is a major milestone in India’s financial services industry. While the stock has seen some volatility, the new leadership could bring stability and growth potential for investors.
Would you invest in Religare Enterprises after this takeover? Share your thoughts in the comments below!
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.