Religare Ent jumps 5% on stake sale in health insurance arm
Shares of Religare Enterprises surged over 5 per cent today after the company announced that it will sell its entire 80 per cent stake in Religare Health Insurance to a consortium of investors led by True North Managers for an estimated Rs 1,040 crore. After making a positive opening, shares of the company further jumped 5.33 per cent to Rs 230 on BSE.
At NSE, shares of the company rose by 4.85 per cent to Rs 230.
"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 Monday. "This transaction values Religare Health Insurance at Rs 1,300 crore and Religare Enterprises currently has 80 per cent 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.