Religare Enterprises surged 7.59% to Rs 131.80 after the company said its lenders in principally agreed to the proposed one time settlement of Religare Finvest.
Religare Finvest Limited (RFL), a wholly-owned subsidiary of Religare Enterprises (REL), has been a victim of siphoning off of funds by its erstwhile promoters. It has initiated and pursuing legal actions for recovery and now begun its path towards revival. Post RFL's one time settlement completion, it will have healthy prudential ratios well above those prescribed by RBI, REL said in a statement.Individually, REL and RFL paid Rs 5.42 crore and Rs 5.08 crore towards settlement amount respectively, the Securities and Exchange Board of India (Sebi) said in a settlement order.
The pending enforcement proceedings for the alleged default ...are settled qua the applicants, Sebi said in a statement. It added that it will not initiate enforcement action against the applicants for the said defaults.
Speaking on this development, Dr Rashmi Saluja, executive chairperson of REL, said: "The RFL OTS is a win-win solution for the lenders and RFL, especially for its revival and expansion. With the completion of OTS, all the legacy issues will be behind us and the Religare group will stride forward to focus on future growth and becoming a 360 financial services provider."
Led by the new management and professionally run independent board since 2018, REL has focused on providing growth, stability and good governance to all its businesses. The company said that its health insurance, housing finance and braking subsidiaries are already on a trajectory of growth, harnessing their full potential with increasing market share and profitability.
In FY 2023, in addition to the growing existing subsidiaries, REL is going to enter new strategic businesses including insurance braking, digital wealth management, asset reconstruction and alternate investment funds and embarking on a new era of growth. The identified sectors have business synergies with existing businesses of REL and this should have a multiplier effect in Religare group's business and financial performance, it said in a statement.
Religare Enterprises, a Core Investment Company (CIC) registered with Reserve Bank of India (RBI), is a diversified financial services company. It offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Affordable Housing Finance, Health Insurance and Retail Braking.
On a consolidated basis, REL reported net loss of Rs 612.25 crore in Q4 March 2022 as against net loss of Rs 89.70 crore in Q4 March 2021. Net sales declined 1.60% to Rs 180.50 crore in Q4 March 2022 over Q4 March 2021.
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