Religare Enterprises Rises on Stake Aale in health insurance arm

The Religare Enterprises stock rose in early trade amid report that the Delhi-based firm will sell its entire 80% stake in Religare Health Insurance to a consortium of investors led by private equity fund True North Managers for an estimated Rs 1,040 crore. "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 Ltd (RHI)," Religare Enterprises Ltd (REL) said in a BSE filing."This transaction values Religare Health Insurance at Rs 1,300 crore and Religare Enterprises currently has 80 % shareholding on a fully diluted basis in the company," it said.The stock rose up to 5% to Rs 230 level in early trade.

At 1122 hours, the stock was trading 2% higher at Rs 222 level on the BSE. Around 9964 shares of the firm were traded on the BSE with its market capitalisation reaching Rs 3950 crore. The stock hit an intra day low of Rs 220 in early trade. The stock closed 0.85% or 1.85 points lower at Rs 216.50 on the BSE.