RBI declines approval for Religare demerger scheme

Scheme filed with the NCLTStrategic Transactions View source PDF Explain this filing

RELIGARE · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-9.2%Reaction day

₹256.85

prior close

₹254.55

announcement price

In-mkt

timing

Nifty Microcap 250market+0.0%-9.3% vs market

Investment Company peers, median of 62sector-0.1%-9.1% vs sector

On the reaction day the stock moved 9.3 pts less than Nifty Microcap 250 and 9.1 pts less than its Investment Company peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.0

10m

-1.7

15m

-3.9

30m

-5.1

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-9.2+0.0-9.3-0.1-9.1

Next day

-10.5-0.0-10.4-0.7-9.8

-11.5-0.2-11.3-0.8-10.7

-7.7+0.2-7.8-1.1-6.6

-8.6+0.3-8.9-0.8-7.8

-8.5+0.4-8.9-1.6-6.9

-9.2+0.9-10.2-2.3-6.9

15d

-9.0+1.6-10.6-2.5-6.5

-0.7+2.0-2.7-3.3+2.6

-12.4+0.6-13.0-7.8-4.6

—————

UpDownMarket · Nifty Microcap 250Sector · Investment Company peers, median of 62Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

The RBI has declined to approve Religare Enterprises' scheme to transfer its Demerged Undertaking to Religare Finvest. NSE and BSE had earlier given no-objection letters. Both REL and Religare Finvest will now engage with the RBI and provide further clarifications. The demerger plan faces a regulatory setback.

Likely market impact

RBI rejection is a setback for the demerger. Company will engage RBI for clarifications. Outcome uncertain, may delay or block the restructuring.