In a stock exchange filing, the company said the review will cover Religare Enterprises Ltd (REL) and its subsidiaries—Religare Finvest and Religare Housing Development Finance Corporation. The assessment aims to identify any irregularities, recommend system improvements, and strengthen internal controls.
The board has also decided to seek immediate funding support from its new promoters, the Burman Group, to address an expected cash flow shortfall.
“The Board has reviewed the company’s fund flow position and identified a cash flow gap in the coming months. After evaluating various options, it has unanimously decided to approach the new promoters, the Burman Group, for immediate financial support,” REL stated in its exchange filing.
The Burman family, which controls Dabur, formally became REL’s promoters in February following an 18-month legal battle with the Rashmi Saluja-led board. In a shareholder vote, 97.5% of investors backed Saluja’s removal, leading to her exit. Subsequently, on February 26, REL’s board directed its subsidiaries to remove Rashmi Saluja and Rakesh Asthana from their respective positions.
Shares of Religare Enterprises have gained 9.59% over the past year but declined 22.32% in the last three months.Also read: Vedanta demerger: Newly demerged cos have potential to grow into $100 bn each: Anil Agarwal
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