Religare Enterprises becomes debt-free Co, shares rise 3%
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The financial services company Religare Enterprises on Wednesday announced the company has become debt-free after repaying Rs 185.5 crore to its subsidiary Religare Finvest.
"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 REL is all set to expand in new BFSI verticals, having synergies with existing businesses," Rashmi Saluja, Chairperson of the company said in a regulatory filing to the exchanges on Wednesday.
The company said it will enter new sectors such as Asset Reconstruction, Alternate Investment Funds, Insurance Broking, Digital Wealth Management.
These new verticals are expected to have a "multiplier effect" in Religare Group's businesses and financial performance, it said in the filing.
Further, the company, in the same filing, said it is in the process of creating a "war chest" to grow the new ventures organically and inorganically.
War chests are funds typically earmarked for a specific purpose, action or campaign or in case of contingency.
Reacting to the company becoming debt-free and its plan to foray into new verticals, its shares rose 3 per cent to Rs 126.45 at 12.47 p.m..
