Skip to main content

Religare’s NBFC Arm Eyes Resolution In 6 Months


With three of the four Religare Group entities having achieved turnaround since 2018, Religare Finvest Ltd. — the NBFC arm of listed holding firm Religare Enterprises Ltd. (REL) — is heading for a resolution in two quarters, a top company executive said.

The resolution of this hardest hit of the Religare group’s firms includes debt restructuring, roping in a new investor, and recovering substantial dues from the erstwhile promoters Malvinder and Shivinder Mohan Singh, who had allegedly siphoned off funds and are currently in jail.

“The debt restructuring proposal of ₹4,000 crore loan is currently with the committee of creditors for REL, and it is expected to get approval soon,” said Nitin Aggarwal, Group CFO, REL. “We are also close to getting a strategic investor with the approval of the regulator. Talks with a few investors are proceeding positively and resolution is expected in two quarters,” he said.

In March this year, TCG Advisory Pvt. Ltd., a part of The Chatterjee Group, was selected to pick up equity stake in Religare Finvest but the RBI rejected the proposal as it was not found to be ‘fit and proper’.

Religare Finvest, which was into SME financing with a peak loan book of ₹16,000 crore, has been passing through difficult times on account of alleged mismanagement and misappropriation of funds by the erstwhile promoters.

“Religare has been a victim of fraud as a lot of funds had been moved out of the companies. Different probes have established criminality and the accused are in judicial custody. He are hopeful of a recovery,” Mr. Aggarwal added.

The RBI had placed Religare under a Corrective Action Plan (CAP) in January 2018 and restrained it from expanding its credit portfolio. Despite this, the company had repaid close to ₹5,600 crore to banks till December 2019.

“The debt restructuring and the induction of a new investor, when approved, will put the company back on track. We have made claims to recover ₹3,000 crore from the erstwhile promoters and others,” Mr. Aggarwal asserted.

He said REL had cleared its external debt of ₹300 crore and an equal amount of internal debt should be cleared shortly.

He added that the group’s health insurance and stock broking businesses were on the upswing.

Religare Health Insurance Company Ltd. (RHICL), its healthcare insurance business, concluded a deal with Kedaara Capital, wherein the private equity major picked up over 6% stake in RHICL and pumped in a total of ₹567 crore, including ₹300 crore of growth capital.

After this capital raise, its solvency ratio is more than 2.5 times, which is sufficient to take care of more than 2-3 years of growth, Mr. Aggarwal said.

        Sandip Ginodia , CEO

        ALTIUS INVESTECH PVT LTD

        We deal in over 60 unlisted companies with 15 years of experience .
        For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

        Email : ginodiasandip1@gmail.com

Comments

Popular posts from this blog

HDFC Life inks distribution tie-up with Catholic Syrian Bank

HDFC Life  has entered into a  bancassurance  (the selling of life assurance and other insurance products and services by banking institutions) tie-up with Catholic Syrian Bank to distribute its individual life insurance products to the private lender’s customers. HDFC Life will offer its leading range of individual life insurance, health and pension products to the Catholic Syrian Bank’s  1.5 million  customer base across all its branches over a period of time. Sandip Ginodia , Director   A LTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p...

NBI Industrial Finance Limited

NBI Industrial Finance Limited , Strand Road, Kolkata-700001 NBI Industrial Finance Limited was originally incorporated in Lahore in 1935 as The New Bank of India Limited. Dr. Ganeshi Lal Aggarwal and Mr. Kohli were the original promoters. After 1947 the Registered office was shifted to New Delhi. To provide for the losses due to partition the face value of the share was reduced from Rs. 10 to Rs. 5 . Later, The New Bank of India Ltd. was nationalised. Most of the non promoter shareholders took cash compensation. The Registered Office of the Company was shifted from Connaught Place, New Delhi to Strand Road , Kolkata. The share's face value was consolidated to Rs. 10. Share Capital : Rs. 1 cr 12 lakh Reserves : Around Rs.11 cr  NBI Industrial Finance Company is , now , the investment holding Company of Bangurs ( Benu Gopal Bangur of Shree Cement group ). They were the promoters of New Bank of India at the time of nationalisation. As the Company has holding of Shree Cement Ltd. it...