Religare Puts An End To The Concerns With One-Time Settlement With Lenders


Investors in Religare Enterprise Limited received exciting news on March 8, 2023. The company announced that Religare Finvest Limited, its wholly-owned subsidiary, had completed a one-time settlement with its creditors by making a final payment of INR400 crore ahead of the deadline (as per the settlement agreement with the 16 lenders dated December 30, 2022).

“The settlement is the final milestone for the closure of the legacy issues, which arose from the misconduct of the former promoters,” the company stated.

What are the company’s next steps for prospects, and how will this news affect Religare share price and total revenue and sales? It will be fascinating to learn. If you are interested in Religare Enterprise Limited’s subsidiary Religare Finvest Limited and want to know how the company is progressing, read on!

Overview of the Religare Finvest Limited SEBI Case

Religare Finvest Limited is a non-deposit-taking, systemically crucial non-banking finance company with an extensive network of branches. The company is committed to providing debt capital to support the growth of SMEs, which serve as the backbone of the Indian economy. Religare Finvest Limited focuses on small and medium enterprise financing, corporate loans, and retail capital market financing, with the vision of setting the Commercial Finance Industry’s standards of excellence.

Since the Religare Finvest SEBI Case in 2017, the subsidiary company’s share price has been distracted, but the wheels have turned for the company, and it is now working to move toward a brighter and better future path. According to the case, Religare Finvest Limited and Religare Enterprise Limited were liable for engaging in deceptive financial practices violating the PFUTP (Prohibition of Fraudulent and Unfair Practices) provisions. The effects of this case were also seen in the Religare share price, and a sales decline of Rs 34.10 crore was observed during the quarter of December 2022, as opposed to Rs 38.06 crore in the previous year at the same interval, equating to a sales decline of 10.40%. However, after investigating the Religare Finvest SEBI case, the company agreed to a settlement without accepting or rejecting the investigation’s findings.

Religare Finvest Limited Makes a One-Time Payment to Lenders

Since January 2018, when the new management took over, Religare Finvest Limited has repaid over INR 9,000 crore to its lenders through collections and with the assistance of its parent company. Religare Enterprise Limited says, “this settlement paves the way for the restart of Religare Finvest’s business and focusing on building a niche in the MSME lending space.” The company stated that RFL would maintain a healthy balance sheet to sustain the company’s growth in the coming quarters. Furthermore, it was announced that RHDFCL (Religare Housing Development Finance Corporation Ltd), a subsidiary of Religare Finvest Limited, will be made a direct subsidiary of Religare Enterprise Limited in due course to continue its goal of focusing on the rapid growth of its affordable housing finance business.

Dr. Rashmi Salujagave, the esteemed Executive Chairperson of Religare Enterprise Limited, commented on the settlement, saying, “RFL OTS is one of a kind revival wherein the management has been able to conclude the legacy issues faced by Religare Group on account of fraudulent activities of erstwhile promoters and has still paid a significant amount to lenders while preserving the long term value of the Religare Group.”

She said, “We are grateful to our regulators and lenders for having faith in the new management’s governance and revitalization initiatives. As a result, I am confident that Religare 2.0 will grow faster and expand into newer businesses to become a 360-degree financial services group and increase value for all stakeholders.”

Mr. Pankaj Sharma, CEO of Religare Finvest Limited, appeared pleased with their progress. He stated that moving forward, the company will focus on lending to micro and small enterprises (MSMEs), creating a niche for RFL in this crucial segment for the growth of the Indian economy.

Reasons to Purchase Unlisted Religare Finvest Shares

Religare Finvest Limited has made a commendable comeback following the RFL SEBI case, and after reaching a one-time settlement with its lenders, the company is now clean. According to Religare Enterprise Limited and its CEO, the company is working to improve itself, so investing in Religare share price appears to be a good option. You can rely on Stockify, India’s leading unlisted shares platform. To check the company’s share price and key performance indicators. You can invest in unlisted shares from top-tier companies in various domains through Stockify. Check it out right now!

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