Religare Enterprises shares jump 5% on stake sale in health insurance arm
New Delhi: Shares of Religare Enterprises surged over 5% on Monday after the company announced that it will sell its entire 80% stake in Religare health insurance to a consortium of investors led by True North Managers for an estimated Rs1,040 crore.
After making a positive opening, shares of the company further jumped 5.33% to Rs230 on the Bombay Stock Exchange (BSE). At the National Stock Exchange (NSE), shares of the company rose by 4.85% to Rs230.
“The company has entered into definitive agreements with a consortium of investors led by True North Managers, an India based private equity fund, to divest its entire stake in Religare Health Insurance Company (RHI),” Religare Enterprises (REL) said in a BSE filing on Sunday.
“This transaction values Religare Health Insurance at Rs1,300 crore and Religare Enterprises currently has 80% shareholding on a fully diluted basis in the company,” it said further.
Religare Enterprises said the transaction marks the single largest investment in a standalone health insurance company in India.