Religare Finvest, a subsidiary of Religare Enterprises Limited, plans to expand its business after completing One-Time-Settlement(OTS) with lenders. In the past few years, Religare, also known as Care health insurance, has been in huge losses for which it also took debt from 16 lenders. During this period, the business growth of Religare was stopped, which impacted the company’s performance.
Religare Finvest Limited(RFL) has completed its OTS of Rs 2320 crore with all vendors and is planning to expand the business. It is also expected that this move of Religare can also impact the Religare health insurance unlisted shares, which under-performed in the Pre-IPO market. Let’s see how Religare plans to expand a business that can benefit retail investors.
Details Of OTS Completed By Religare
On March 8, Religare completed the OTS by making a full and final settlement of Rs 400 crore with its 16 lenders before the deadline. It is the final settlement by the RFL for the closure of the legacy issues. Rashmi Saluja, Executive Chairperson of Religare Enterprises, said, “RFL repaid over Rs 9,000 debt to its lenders by completing the OTS.”
She also stated, “With the full and final settlement, Religare is all set to focus on expanding the business by focusing on micro, small, and medium-sized enterprises lending space soon.”
After this OTS, RFL will receive no-dues certificates from OTS lenders as per the agreement. With the news of the final OTS settlement, there has also been a surge in the care health insurance share price that grew to 5.99% and touched the final price of Rs 163.55 in the grey market.
It executed the OTS agreement back in December 2022 along with its parent company(REL) and sixteen secured lenders for full and final settlement. RFL completed this OTS a month before the deadline and received a green light of debt-free to focus on expanding its operations.
What Is Religare’s Business Expansion Plan Post One-Time-Settlement(OTS)?
Religare has paved the way to come out of the Corrective Action Plan (CAP) imposed by the Reserved Bank Of India due to its staggering financial health. With the completion of the OTS, the company can now focus on expanding its business. The main focus of Religare at this stage is to diversify its existing services and introduce new products. Here are the possible expansion plan of Religare for the next few years:
Entering In New Strategic Business
There is a possibility that Religare will focus on entering a new strategic business market. In the next financial year, its main focus will be to boost business growth by exploring the services like digital asset management, insurance broking, wealth management, alternative investment funds, and asset reconstruction services. Moreover, it is also expected that Religare will improve its balance sheet by creating a new growth plan for its subsidiaries.
Build A Niche Market
Religare’s primary focus will be building a niche market to seamlessly market its product and services. In the next coming months, you should not be surprised to see RFL entering a lending space and creating well-distributed channels for micro, small, and medium size businesses.
The officials of RFL stated in the press release, “The company has a healthy balance sheet to sustain the business growth in the next few quarters.” Apart from this, Religare’s future business growth plan can also include raising new funds for expanding its business operations in new states of India.
Brings An IPO Of Its Subsidiaries
Religare has subsidiaries, including Religare Health Insurance, Religare Finvest, and more. In order to strengthen its market position, it is clear that REL will bring an IPO of Religare Care Health Insurance. It will help the company to raise new funds with the help of an Initial Public Offering. At this time, retail investors can only buy Religare unlisted shares from the Pre-IPO market. After listing its subsidiaries on NSE and BSE, Religare will focus on long-term business growth.
Is It Best To Buy Religare Unlisted Shares After Its OTS?
For any company, getting no-dues certificates from lenders is a positive sign. It is also essential for investors as OTS means the company is debt-free and secure for investing. In the past few years, when RFL had weak financial health and was placed under RBI’s Corrective Action Plan(CAP), investors were unsure about the company’s future.
As of now, Religare has completed the OTS with all its lenders; you can invest in Religare Health Insurance unlisted shares. However, it is also vital for you to carefully analyse the company’s financial performance before making any decision. Investing in Religare’s unlisted shares has various benefits, as the company primarily focuses on expanding its business. Moreover, we can expect the Religare health insurance IPO to launch soon.
You can buy unlisted shares of Religare and other top-performing companies by using Stockify. It is the best-unlisted share brokerage platform run by experts to make your investment easy. Using it, you can check the company’s current unlisted share price and financial details. Be a part of Religare’s growth and buy its unlisted shares now!