“To address the funding requirements, the board has recommended a short term Inter Corporate Loan (ICL) from the Promoter Group or its Associate Entities in the interim shall be best suited given the tight timeline for the requirement,” the company statement said.
The company’s board has commissioned a governance review of REL and its subsidiaries viz. Religare Finvest Limited (RFL) and Religare Housing Development Finance Corporation Limited (RHDFCL), the company filing said.
“The objective is to review the past operating practices, suggest improvements around systems & controls for future implementation and to identify any potential instances of misconduct by certain current and/or ex-employees of the aforementioned companies. For conducting this review, the Board of Directors have resolved to engage a law firm M/s Trilegal who would be assisted by M/s Grant Thornton Bharat LLP,” the filing said.
Shares of Religare today ended at Rs 235.20 on the NSE, falling by Rs 7.25 or 2.99% from the Thursday closing price.
The Burman family that runs Dabur took the reins of REL after an 18-month-long legal battle. They are the new promoters of the Delhi-based financial services company.Following the transfer of control, ET had reported about the expectations from the Burmans for the infusion of funds into the firm along with the appointment of a new management team to turn Religare into a competitive non-banking financial company (NBFC).”The Burman family is likely to infuse Rs 2,000 crore- the funds initially earmarked for the open offer-by subscribing to preferential shares, thereby increasing their stake to over 50%,” sources said. The new promoters are also expected to undertake a rebranding exercise, which may include renaming the company and its subsidiaries in the coming months to align with the Burmans’ strategic vision, said the people cited above.
Read more: With Burman’s in the driving seat, fresh funds and a new name on cards for Religare
The conflict between Religare’s management and the Burman family has significantly impacted the company’s affairs. After seven consecutive quarters of profitability since March 2023, the company reported a ₹63 crore loss in the quarter ended December 2024.
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