The financial services company announced its divestment plans in Religare Finvest (RFL) to TCG Advisory Services. Following the announcment, share price of Religare Enterprises Limited hit upper circuit on Thursday after a 10 percent jump to Rs 43.05 apiece.

In a regulatory filing to the stock exchanges, Religare Enterprises said, "The company has entered into a binding term sheet with TCG Advisory Services, Religare Finvest (RFL) and Religare Housing Development Finance Corporation (RHDFCL), whereby the company will divest its entire stake in RFL, a subsidiary of the company, to TCG Advisory Services or any of its affiliates."

Religare Finvest reported total revenue of Rs 796 crore for the financial year ended March 31, 2019 and its net worth/equity was Rs 947 crore as on March 31, 2019 translating to approximately 33.09 percent of consolidated revenue and approximately 114 percent of consolidated net worth/equity attributable to owners of the company, the filing further said.

The consideration amount to be received from the sale was not disclosed with regard to confidentiality obligations under the term sheet. The deal will be subject to statutory and regulatory approvals.

In the last five trading sessions, the stock has gained 53 percent.