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Lenders in principle agree to proposed 'One Time Settlement' of subsidiary: Religare Enterprises
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Religare Enterprises, one of India's leading diversified financial service groups, in continuation to its earlier announcements relating to the revival plan of its wholly-owned subsidiary Religare Finvest, has announced that it has received a communication from its lead lender, informing that the lenders have in principle agreed to consider the 'One-Time Settlement' (OTS) proposal of Religare Finvest (RFL), the group said in a statement on Wednesday.
Led by the new management and professionally-run independent Board since 2018, Religare Enterprises has focused on providing growth, stability and good governance to all its businesses.
Religare's Health Insurance, Housing Finance and Broking subsidiaries are already on a trajectory of growth, harnessing their full potential with increasing market share and profitability.
In FY23, in addition to the growing existing subsidiaries, Religare is going to enter new strategic businesses, including insurance broking, digital wealth management, asset reconstruction and alternate investment funds and embarking on a new era of growth.
The identified sectors have business synergies with existing businesses of Religare and this should have a multiplier effect in Religare group's business and financial performance.
Religare has resolved many legacy issues left over by its erstwhile promoters, including settlement with SEBI and becoming debt free, the statement said.
"RFL, which has been a victim of siphoning off of funds by its erstwhile promoters, is pursuing legal actions for recovery and is now on its path towards revival. Post RFL's OTS completion, it will have healthy prudential ratios well above those prescribed by RBI," it added.
OTS is a win-win solution for the lenders and RFL, especially for its revival and expansion, said Rashmi Saluja, Executive Chairperson of Religare Enterprises.
"With the completion of OTS, all the legacy issues will be behind us and the Religare group will stride forward to focus on future growth and becoming a 3600 financial services provider," Saluja said.
