Shares of Religare Enterprises rose nearly 7 percent intraday on March 9 after company’s subsidiary completed one-time-settlement (OTS) with its lenders.
Religare Enterprises’ (REL) wholly-owned subsidiary Religare Finvest Limited (RFL), has completed the one-time-settlement (OTS) with 16 lenders on 8th March 2023 by making a full and final payment of Rs 400 crores well in advance of the three-month deadline as per the settlement agreement with the lenders dated 30th December 2022, company said in its release.
With this, Religare Finvest has completed the entire OTS payment of Rs 2,178 Crore on 8 March, 2023 to all OTS lenders against their total outstanding dues including unsecured exposure.
The settlement is the last milestone for the closure of the legacy issues, which emanated from the misconduct of the erstwhile promoters.
Since January 2018, when the new management took over, RFL has repaid over Rs 9,000 crores to its lenders from its collections and through the support of REL, it added.
This settlement paves the way for restarting of business of RFL and focusing on building a niche in the MSME lending space.
Religare Finvest will have a healthy balance sheet to sustain business growth in the next few quarters, company said.
Also, in continuation of its objective of focussing on the rapid growth of its affordable housing finance business, RFL’s subsidiary RHDFCL will be made a direct subsidiary of REL in due course.
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“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," said Rashmi Saluja, Executive Chairperson, Religare Enterprises.
"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,” she added.
At 10:35 hrs Religare Enterprises was quoting at Rs 164.75, up Rs 10.45, or 6.77 percent on the BSE.