Religare Puts An End To The Concerns With One-Time Settlement With Lenders
Religare Puts An End To The Concerns With One-Time Settlement With Lenders
March 8, 2023, came with sparkling news for Religare Enterprise Limited's investors. The company announced that its wholly-owned subsidiary Religare Finvest Limited 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 company said, "The settlement is the last milestone for the closure of the legacy issues, which emanated from the misconduct of the erstwhile promoters."
What are the next steps taken by the company for future prospects, and how will this news affect Religare share price and the company's total revenue and sales? Learning it will be quite interesting. If you are interested in Religare Enterprise Limited's arm Religare Finvest Limited and want to know how the company is taking things forward, follow till the end!
Religare Finvest Limited SEBI Case Overview
Religare Finvest Limited is a Small Medium Enterprise (SME) non-deposit-taking, systemically important non-banking finance company with a vast network of branches. The company is committed to providing debt capital to power the growth of SMEs which aggregate as the backbone of India's economy. Religare Finvest Limited focuses on small and medium enterprise financing, corporate loans and retail capital market financing and has the vision to set the standards of excellence that are the set standards of the Commercial Finance Industry.
The subsidiary company's share price was distracted ever since the Religare Finvest SEBI Case in 2017, but the wheels have turned for the company, and it is now working to move toward a bright and better future path. As per the case, Religare Finvest Limited and Religare Enterprise Limited were held accountable for indulging in deceptive financial activities, violating the PFUTP (Prohibition of Fraudulent and Unfair Practices) provisions. This case's effects were also seen in the Religare share price, and a sales decline of Rs 34.10 crore during the quarter of December 2022 was observed, as against Rs 38.06 crore in the previous year at the same interval, which equates to a sales decline of 10.40%. After investigating the Religare Finvest SEBI case, the company agreed on the settlement without approving or denying the investigation findings.
Religare Finvest Limited Makes One-Time Settlement With The Lenders
Religare Finvest Limited had repaid over INR 9,000 crore to its lenders from its collections and with the help of its parent company since January 2018, when the new management took over. Religare Enterprise Limited stated, "This settlement paves the way for the restarting of the business of Religare Finvest and focusing on building a niche in the MSME lending space." The company claimed that RFL would maintain a healthy balance sheet to sustain the growth of the company for the next few quarters. Further, a significant news was made public that the subsidiary of Religare Finvest Limited, RHDFCL (Religare Housing Development Finance Corporation Ltd), will be made a direct subsidiary of Religare Enterprise Limited in due course in continuation of its aim of focusing on the rapid growth of its affordable housing finance business.
Esteemed Executive Chairperson of Religare Enterprise Limited, Dr Rashmi Salujagave, reacted to this settlement and said, "RFL OTS is one of its 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 further added, "We are grateful to our regulators and our lenders, who have put faith in the governance and revival initiatives of the new management. I am very confident that Religare 2.0 will be able to grow faster, as well as a foray into newer businesses to become a 360-degree financial services group and enhance value for all its stakeholders."
The CEO of Religare Finvest Limited, Mr Pankaj Sharma, seemed happy with their development and claimed that moving forward the company will focus on lending to micro and small enterprises (MSMEs), creating a niche for RFL in this prominently crucial segment for the growth of the Indian economy.
Reasons To Buy Religare Finvest Unlisted Shares
Religare Finvest Limited has shown a commendable turnaround after the RFL SEBI case, and after making its one-time settlement with its lenders, now the company is clean. As per Religare Enterprise Limited and the company's head, the company is working to improve itself, so investing in Religare share price seems a good option. If you want to check the company's share price and key performance indicators, you can trust Stockify, India's leading unlisted shares platform. At Stockify, you get a range of unlisted shares to invest in from top-level companies of different domains. Check it out now!
