Religare Enterprises Stock Up by More Than 3% Today

Mumbai, July 9, 2025: Shares of Religare Enterprises surged by over 6% on Wednesday, hitting a  high of ₹234.8 after the company announced plans to raise funds through a preferential issue of securities. As of 12:30 PM, the shares were trading slightly lower, up by 3.65% at ₹229.63 on the NSE, significantly outperforming the benchmark Sensex, which edged up just 0.03% to 83,736.59.

Board Meeting Scheduled to Approve Fundraising

The rally came after the company informed the stock exchanges that its Board of Directors will meet on July 11, 2025, to consider and potentially approve a fundraising proposal. The capital infusion is expected to be executed via the issuance of specified securities on a preferential basis.

Market Capitalisation and Trading Data

As of midday Wednesday, Religare’s market capitalisation stood at ₹7,578.58 crore. The stock’s 52-week range lies between ₹202.45 and ₹319.9. During the session, shares traded in a narrow band between ₹226.62 and ₹234.48.

Q4 Financial Performance

In the fourth quarter of FY25, Religare Enterprises posted a consolidated net profit of ₹151.3 crore, down 17% year-on-year from ₹181 crore. However, this marked a significant turnaround from a loss of ₹36.28 crore in Q3 FY25, showcasing a sequential improvement in profitability. Revenue from operations rose 9.3% year-on-year to ₹2,028.4 crore, up from ₹1,855.68 crore in the same quarter last year and ₹1,664.4 crore in Q3 FY25.

What is a Preferential Issue of Securities?

A preferential issue is a method by which a company allots shares or other convertible securities (like debentures or warrants) to a select group of investors, rather than offering them to the general public through a public issue or to all existing shareholders via a rights issue. This “preferred” group can include promoters, institutional investors, venture capitalists, or other strategic partners.

Background: Burman Takeover Saga

Religare has been in the spotlight since September 2023 due to a high-profile takeover battle. The Burman family, promoters of Dabur, triggered an open offer after raising their stake in the company to 25%. Their offer to acquire an additional 26% at ₹235 per share was initially opposed by the then-board, which cited undervaluation and questioned the family’s regulatory credentials. Despite the resistance, the Burmans gained control of Religare in February 2025 and were officially designated as promoters.

In a statement following their control, the Burman family expressed gratitude to regulators and stakeholders and reaffirmed their commitment to long-term value creation in partnership with Religare’s leadership and board. This upcoming fundraising could be an early step under the new management to strengthen the company’s financials for future growth.

What’s Ahead For Religare?

The planned preferential issue signals that Religare, under Burman family leadership, is moving quickly to strengthen its capital base and fund future growth. If the Board approves the fundraising on July 11, investor confidence may rise further, especially if strategic partners participate. Post-fundraise, markets will closely watch how the capital is deployed—whether into scaling core businesses, acquisitions, or debt reduction. With the Burmans now at the helm, this could mark the beginning of a larger transformation plan aimed at unlocking long-term shareholder value.

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