Religare receives big impetus, lenders in principally agree to the proposed One Tjme Settlement of Religare Finvest

Religare Enterprises Limited (REL), India's leading diversified financial service group, in continuation to its earlier announcements relating to the revival plan of Religare Finvest Limited (RFL), a wholly-owned subsidiary of REL has announced that it has received a communication from its lead lender, informing that the lenders have in-principally agreed to consider the One-Time Settlement ("OTS") proposal of RFL.

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.

Religare's 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.

Religare has resolved many legacy issues left over by its erstwhile promoters including settlement with SEBI and becoming debt free.

RFL which has been a victim of siphoning off of funds by its erstwhile promoters has initiated and pursuing legal actions for recovery and now begun its path towards revival. Post RFL's OTS completion, it will have healthy prudential ratios well above those prescribed by RBI.

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."

Shares of Religare Enterprises Limited was last trading in BSE at Rs. 122.50 as compared to the previous close of Rs. 122.35. The total number of shares traded during the day was 56414 in over 1336 trades.

The stock hit an intraday high of Rs. 124.00 and intraday low of 120.00. The net turnover during the day was Rs. 6883383.00.

Source : Equity Bulls

Keywords

ReligareEnterprises INE621H01010 OTS ReligareFinvest