Religare Finvest completes Rs 2,178 crore one-time settlement with lenders; to get no dues certificate

Speaking about that and future fund-raising plans, Rashmi Saluja of Religare Ent, says, "Repayment has given the management a lot of strength to move forward with its fund-raising plans.”

Saluja emphasised that now is the time for value unlocking, and that Religare needs to create a robust plan for all its businesses. The company will explore options such as an IPO or other alternatives to raise funds. It will also ensure that all businesses fit into IRDAI and RBI's regulations.

As per Saluja, Religare has kept rating agencies informed about the latest developments, and they will look at the company as a new entity without any legacy issues. She also mentioned that Star & Care have done extremely well, and that the standalone health insurance company is better. The broking business is the most vintage company in the group, and the company plans to look for an IPO for this business in the next 2-2.5 years.

Religare plans to raise in the range of Rs 600-700 crore in the next couple of months, and has already repaid loans three weeks before the due date.

RFL has been under a Corrective Action Plan (CAP) since January 2018 due to its weak financial health. The NBFC subsidiary of Religare Enterprises owed about Rs 5,300 crore to the consortium of lenders led by the State Bank of India (SBI). Other lenders include the Bank of Baroda, Union Bank of India, Canara Bank, Punjab National Bank, Bank of India, IDBI Bank, Punjab & Sind Bank, and Bank of Maharashtra.

In the quarter ending December 2022, the net loss of Religare Finvest narrowed to Rs 151.65 crore from Rs 255.74 crore in the same period last year. Revenue fell to Rs 34 crore from 38 crore year-on-year.

The stock recently slipped from the level of 190 to hit the 5-month low of 149. It currently trades just above 150.