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Customers Bancorp to invest $51 mln in Religare

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Reuters MUMBAI
Last Updated : Jun 27 2013 | 9:25 AM IST

MUMBAI (Reuters) - Religare Enterprises Ltd said late on Wednesday U.S.-based bank Customers Bancorp Inc will invest $51 million in the financial services firm through a combination of stake sale by founders and issue of share warrants and fresh shares.

The transaction is part of a plan by Religare's founders, billionaire brothers Malvinder and Shivinder Singh, to bring down their holding to 49 percent in order to qualify for a banking licence in India.

Pennsylvania-based Customers will buy shares worth $22 million from the founders. It will invest another $28 million in preferential share warrants in Religare, convertible within 18 months, and subscribe to fresh shares worth $1 million, Religare said in a statement.

It did not specify how much Customers Bancorp would own in Religare after the transaction.

The Reserve Bank of India issued guidelines in February allowing any type of company to set up a bank. (Reporting by Prashant Mehra; Editing by Jijo Jacob)

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First Published: Jun 27 2013 | 9:13 AM IST

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