Religare Enterprises stock locked in upper circuit as Edelweiss Financial buys its securities business

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The Religare Enterprises stock rose 5 percent today after Edelweiss Financial Services said its wealth management arm will acquire Religare’s securities business for an undisclosed sum.At 2:17 pm, the Religare Enterprises stock was trading 4.95% higher at Rs 73.15 on the BSE.  The stock is locked in upper circuit at 73.15 after the news of the deal poured in.The stock is down 71 percent since the beginning of this year. On an yearly basis, the stock has fallen 70.93 percent. Meanwhile, the Edelweiss Financial Services stock rose 1.82% or 5 points to 296.55 on the BSE. Edelweiss Financial Services announced the deal in a filing to the stock exchanges before market hours today. “Edelweiss and Religare today announced the acquisition by Edelweiss Wealth Management of Religare’s securities business, which includes securities and commodities broking, and depository participant services,” the company said in a regulatory filing.The company said this acquisition will help it expand its geographical reach and distribution footprint and almost treble the client base.”Edelweiss will also take on the pan-India distribution of around 1,250 points of presence, including over 90 branches, over 1 million clients and the employees of the business,” it added.”The complementary nature of Religare’s business to our wealth management platform made for an attractive choice, as it expands our offering and supports our growth plans,” said Nitin Jain, CEO, Global Wealth and Asset Management, Edelweiss Group.

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