Religare up 5% on banking foray buzz
Shares of Religare Enterprises were in the limelight Wednesday after reports that the financial services firm intends to enter the banking business, using the $100 billion its founders will get from selling their stake in Ranbaxy Laboratories to J...
By ET Online |
MUMBAI: Shares of Religare Enterprises were in the limelight Wednesday after reports that the financial services firm intends to enter the banking business, using the $100 billion its founders will get from selling their stake in Ranbaxy Laboratories to Japanese company Daiichi Sankyo.
The Ranbaxy promoted-financial services company is exploring both organic and inorganic route, when the sector opens up, for the venture. Incidentally, the company acquired a 4.2 per cent stake in Karnataka Bank in the last quarter of 2006, which is the only bank where Religare has invested so far.
Under the existing regulations, a corporate entity cannot buy more than 10% in a bank. Banking licences are hard to get in India and Religare has also not applied for a banking license.
At 10:50 am, the Religare share was up 4.74 per cent at Rs 422, easing from a high of Rs 432 in trade so far. The counter clocked a volume of 42,196 against 52,975 shares.
The Ranbaxy promoted-financial services company is exploring both organic and inorganic route, when the sector opens up, for the venture. Incidentally, the company acquired a 4.2 per cent stake in Karnataka Bank in the last quarter of 2006, which is the only bank where Religare has invested so far.
Under the existing regulations, a corporate entity cannot buy more than 10% in a bank. Banking licences are hard to get in India and Religare has also not applied for a banking license.
At 10:50 am, the Religare share was up 4.74 per cent at Rs 422, easing from a high of Rs 432 in trade so far. The counter clocked a volume of 42,196 against 52,975 shares.
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