Religare Enterprises to create war chest for new business ventures

Diversified financial services provider Religare Enterprises Ltd (REL) on Wednesday said it is in the process of setting up a war chest for new ventures.

In a regulatory filing, the Non-Banking Finance Company (NBFC) said it was going to enter new strategic sectors, including asset reconstruction, alternate investment funds, insurance broking and digital wealth management, embarking on a new era of growth.

The company said it was in the process of creating a war chest to grow the new ventures organically and inorganically.

REL said these identified sectors have business synergies with existing BFSI (Banking, Financial Services and Insurance) verticals of the company and this should have a multiplier effect on Religare Group's business and financial performance.

According to the filing, REL has become debt free by repaying Rs 185.50 crore that it owed to its subsidiary Religare Finvest Ltd (RFL).

"We are pleased to announce that REL is completely debt free now. As a holding company, REL is providing the necessary growth capital to all its businesses and now REL is all set to expand in new BFSI verticals, having synergies with existing businesses," Rashmi Saluja, Chairperson of REL, said.

Care Health and Religare Broking businesses are doing phenomenally well, charting an exponential growth path, she added.

Further, the company said it has put the legal issues behind, having been led by a new management and professionally run independent board.

The company has adopted a multi-pronged strategy for its financial services verticals, which have resulted in marked improvement in business performance and value unlocking for its shareholders, it noted.

The company faced financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh.

Stocks of REL jumped 5.37 per cent to Rs 129.50 apiece on BSE.