Religare shares surge 10 per cent on stake sale in subsidiary

NEW DELHI: Shares of Religare Enterprises on Thursday surged nearly 10 per cent to hit the upper circuit limit a day after the company announced divestment of stake in its subsidiary to TCG Advisory Services.

In a regulatory filing, Religare Enterprises on Wednesday said it "has entered into a binding term sheet with TCG Advisory Services, Religare Finvest (RFL) and Religare Housing Development Finance Corporation, whereby the company will divest its entire stake in RFL, a subsidiary of the company, to TCG Advisory Services or any of its affiliates."

On BSE, the shares hit the upper circuit limit of Rs 42.95, surging 9.99 per cent over its previous close of Rs 39.05. Similarly, on NSE, the scrip rose 9.96 per cent to Rs 43.05.

The filing further said that pursuant to the acquisition, TCG Advisory Services would also acquire the indirect interest of the company in Religare Housing Development Finance Corporation, which is a subsidiary of RFL.