Religare Enterprises Ltd, ending its 12-year engagement with the Delhi-based financial services company, even as the management of Religare and the Burman family continue to battle it out for control of the company. IFC, the private finance arm of the World Bank, sold its 2.42% stake between 29 January and 2 February, according to a public markets disclosure made by Religare. Mint could not independently ascertain the buyer of the shares.
Still, IFC’s stake sale coincides with a disclosure made by the Burmans on 31 January that it had bought a 4% stake in Religare to take its total ownership in the company to 25.18%. “In all probability, IFC sold its stake to Burmans as the Burman family has been looking to buy shares from large investors who are looking to exit," an investor in Religare said on condition of anonymity. The volume-weighted average price (VWAP) of Religare was ₹232.84 a share when the shares were sold, implying IFC earned ₹186 crore.
“This seems like a portfolio call taken by IFC. It is an opportune time to exit as the stock has been doing well lately," said a senior executive at a proxy advisory firm, also requesting anonymity. Email queries sent to a spokesperson of the Burman family, and to IFC and Religare seeking comment went unanswered till press time.
Significantly, IFC, which had a 3.9% stake at the end of 30 September 2023, had sold 1.42% in October-December as well. The VWAP of Religare at that time was ₹225.9 a share, translating to IFC earning ₹110 crore. Up until then, IFC did not sell any shares and its ownership had declined on account of the company issuing new shares.
Read more on livemint.com