In a inventory change submitting on Thursday, the corporate posted a letter written by the Burmans asserting the change in management and disclosing the acquisition of a complete 83.2 million fairness shares representing 25.16% of the excellent paid-up share capital of the corporate.
REL’s principal companies embody lending (Religare Finvest), medical insurance (Care Well being Insurance coverage) and retail broking (Religare Broking). Final 12 months, State Financial institution of India, one of many lenders to Religare Finvest, eliminated the corporate from the Central Fraud Registry database.
“Each Religare Finvest and its subsidiary Religare Housing Growth Finance Corp. require recent capital from the dad or mum firm to speed up development,” stated one of many individuals cited above. “The Burmans’ capital infusion is predicted to supply the mandatory increase, serving to the lending enterprise increase at a quicker tempo.”
A spokesperson for the Burmans stated the quick precedence is to ascertain stability, strengthen governance, and drive sustainable development. “The Burman Group will work with REL’s management and board to bolster its strategic route and improve long-term worth creation,” the particular person stated. “We’ve got all the time invested in companies with sturdy fundamentals and excessive development potential, and we’ll apply the identical disciplined method to REL with the very best ranges of governance, this was the intent with which we launched our open provide for management and we stay dedicated to that.”Unlisted shares of Care Well being Insurance coverage are at present buying and selling at a valuation of ₹18,000 crore within the unofficial market. REL holds a62.98% stake in Care Well being Insurance coverage, formally valued at ₹11,200 crore—nonetheless considerably larger than REL’s market capitalisation of ₹7,373 crore.The battle between Religare’s administration and the Burman household has considerably impacted the corporate’s affairs. After seven consecutive quarters of profitability since March 2023, the corporate reported a ₹63 crore loss within the quarter ended December 2024.
Religare had been with out promoters since February 2018, when its former promoters, Malvinder and Shivinder Mohan Singh of Ranbaxy, have been ousted for defrauding REL subsidiary Religare Finvest of practically ₹2,400 crore. The Singh brothers misplaced management of REL because of the invocation of pledges by lenders. They have been arrested together with a number of different individuals in 2019.
A board comprising unbiased administrators was put in place to steer the corporate to security and restoration. In December 2019, Rashmi Saluja was appointed chairperson and CEO. In September 2023, the Burman household, which already held a 20% stake in Religare, acquired an extra 5%, triggering a compulsory open provide. That very same month, the Burmans introduced the open provide to buy one other 26% stake from the general public by investing $255 million, aiming to take management of the corporate.