Religare Enterprises shares close nearly 5% up on bourses

MUMBAI: Shares of financial services firm Religare Enterprises ended nearly 5 per cent higher today amid reports of a possible takeover of the company.

After surging 7.25 per cent to Rs 340.20 in intra-day trade, shares of the company finally ended at Rs 332.50, up 4.82 per cent on the BSE.

At the NSE, the stock rose by 3.91 per cent to Rs 332.85. "Religare Enterprise surged more than 7 per cent in the day after market rumours that at least two PE firms are in talks with the company to buy a majority stake or buy out entire promoters' holdings," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.

According to media reports, private equity groups Apollo Global Management and Baring Asia have emerged as the two front-runners to take over Religare Enterprises.

In a clarification to the BSE, the company said, "We are not aware of any information or reason which could explain the movement of the scrip."

Religare Enterprises, as the holding company for a large, diversified financial services group, keeps exploring various strategic alternatives from time to time, including raising primary capital for funding growth, the filing said.

However, at this point in time, there is no further disclosable event or information.

Meanwhile, in the stock market, the benchmark BSE Sensex ended 75.07 points down at 27,945.80.