Religare, IDFC shares surge up to 4.45% on bank licence plans

Stocks

oi-Sunil

By Sunil Fernandes

Updated: Wednesday, June 19, 2013, 12:26 [IST]

Shares of Religare Enterprises and IDFC on Wednesday rose by as much as 4.5 percent triggered by smart investor buying amid bank licence plans by both the companies.

Shares of Religare Enterprises surged 4.47 percent to Rs 330 on the BSE.

Similarly, IDFC's scrip opened the day on a strong note and as the trade progressed it jumped 3.32 percent to Rs 147.70 on the BSE.

At the NSE, the scrip gained 3.39 percent to Rs 147.65.

Readying Religare Enterprises for a banking licence, its promoters billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh have decided to sell nearly 23 percent stake, currently worth over Rs 1,000 crore, to meet the RBI eligibility norms for new banks.

Religare, a leading non-banking financial services company, is among the major contenders for new banking licences, for which the applicants are required to submit their applications to the Reserve Bank by July 1.

The company had yesterday said that its promoters, including Singh brothers, have decided to lower their stake in Religare Enterprises to 49 percent, from 71.75 percent currently, to meet the eligibility criteria for a bank licence.

Infrastructure financing company IDFC had also said the board has approved a proposal to seek licence from RBI for setting up a bank.

The board of the company at its meeting held yesterday had approved a resolution for making an application to the Reserve Bank of India for obtaining a banking licence.

In the stock market, the BSE benchmark Sensex was trading at 19,181.95, down 41.33 points at 1120 hrs.

PTI