I am really not sure about you latter part of query.
So if the promoter is liable to pay the damages, this is no way affects the fundamentals of the company, isnt it ?
The company is available currently at dirt cheap price.
The only problem here is that the Singh brothers are fighting a lot of legal battles and this makes one loose trust in the promoters. With their Ranbaxy deal, where they concealed information, they dont seem to be honest with their deals too.
So i agree with you here that we should isolate the fundamentals from promoters action. My question was on your comment about 3900cr in the REL kitty. Can they legally use this to pay their penalty without selling or pledging their religare shares?
http://www.religare.com/uploads/20180130-REL-PressStatement30012018142230.pdf
Religareās press release about the recent accusation of siphoning of the funds by promoters.
@Radiozammy
I really have no clue about the legality of that point. This was just what struck me.
if the singh brothers have to pay in from their pockets, a google search tells me that their net worth is about 1 billion USD (about 6400 cr?) thus they can afford it, albeit taking a big hit.
It may be very naive or simplistic for me to think on these lines though, not sure.
Got it. So this is how i see it. If the Singh brothers touch their religare shares to pay the penalty, then it puts in even more pressure on the stock driving it lower. At the same time, we still need more clarity around the management changes that need to put in to fulfill the resignations and more so to steer the company from this mess. Once we have clarity on both is when selling pressure will ease, i think we/ I would in a better position to take a decision. All in all, definitely a good opportunity if the fundamentals do remain intact.
After agreeing to sell its stake in Religare finvest, now the company is selling ~6% of its stake in Religare Health insurance to Kedaara. If both the transactions goes through, Religare will become a debt free company.
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Lots of interesting things that are happening in Religare. I think the new management efforts will be futile soon, I have much believe in capabilities of Siddharth Mehta (bay capital)
Disclose: I am invested in REL.
Big Bulls are entering into the Stock including FPI`s via Pref. Allotment in July 2021.
Madhusudan Kela & Burman Family (Dabur)
Burmans also holds 20% stake in Eveready Industries, seems they are keen to invest in different business.
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Where do u see Madhu kelas name .didnāt see in the list . Is there another detailed list of investors
check egm noticeā dt 11/6/2021. they hold shares by the name of Brijkishore trading pvt ltd
@priyaanshu thanks . I see brijkishor but not able to establish the connection . Directors are different . Is there a way to check eventual beneficiaries of an entity
Checkout the explanatory statement of the Notice of EGM. MK`s and his wife names comes as beneficiary.
They must be SBO`s. See every company has to file BEN eforms to disclose benificiary behind the companies. Being a Practicing CS, I know as we do file for our clients. You can check the shareholding pattern of the Company from Ministry of Corporate Affairs.
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Thanks . Very helpful .
Data from Stock Exchanges shows that Plutus Wealth Management LLP is continuously acquiring the shares from open market, their holding will see a good jump from 4.72% (sept qtr) to 6.20% in December 2021 Shareholding pattern. All shares bought in November month. None of the investors whom were allotted shares in July 2021 under preferential allotment, have sold shares till date. Though the Company is not performing as expected in real terms but it seems Foreign and Domestic investors have increased their faith in the turnaround story of religare enterprise with Care Insurance IPO expected in 1st Half of 2022.
Disc: Holding
But I fail to understand why the own management like Rashmi Saluja and all other top personals are selling their holdings those share they got from employee stock option plan mostly sold in open market. the other hand Religareās finvest debt resolution plan seem not walking the talk of management. The recent economic times article makes sense although religare has provided calcification
Disc: Holding
Employees always sells their holdings which comes under ESOPs, not all but mostly, same is happening with ITC for many years. RFL shall start walking on its feet by early 2022, however what I did not understood that why they applied for change in name, why in sense that their team handling for RBI matter should have known the rules, RBI do not allow change in name like this, it is not that easy like they got approval from IRDAI, even ROC will allow them to change name but RBI wont. Further I am eying the IPO news of Care Insurance which I see coming up in next FY for sure.
I do not think they have applied for RFL name change; Because a resolution must be passed by the shareholders before applying to RBI. The article in ET is only making sense about Religare Finvest debt resolution plan may not get regulatory approval due to ongoing case of financial irregularities and in past many bank have marked RFLās NPA as fraud and reported the same to RBI, This information is available in public domain. The RBI June 7, 2019 Prudential Framework for Resolution notification clearly states that Borrowers who have committed frauds/ malfeasance/ wilful default will remain ineligible for restructuring. However, in cases where the existing promoters are replaced by new promoters, and the borrower company is totally delinked from such erstwhile promoters/management, lenders may take a view on restructuring such accounts based on their viability, without prejudice to the continuance of criminal action against the erstwhile promoters/management. but in RFL case REL still holding as promoter company. The RFL proposed a debt recast plan with REL as its promoter company. There is a dichotomy and As per the RBIās regulations, lenders cannot restructure loans of borrowers tagged as fraud, unless there is a change in promoter.
About the point you highlighted the Employees always sells their holdings which comes under ESOPs. I am not agree with this statement as the case here Rashmi Saluja and all other top personals selling in November like a month before debt recast plan getting approval is not a normal scenario. In many media bites Rashmi Saluja and other top management said that Religare Finvest debt recast at final stages; NBFC to reboot in January. they have kept 471Cr in reserved for same. but contradictory to their statement in other hand they are selling ESOPs in open market looks fishy and not normal case.
Disclosure: Betting on new management, Siddharth Mehta and care health insurance growth I have invested a good chunk of portfolio and seems lesson learned. Will wait for further developments as its goes by.
The Procedure is like this : Company first apply for name availability at Ministry of Corporate Affairs, once taken, an application for prior approval is made to RBI with letter of mca, asking for name change. Here Shareholders approval is required only after approval from RBI not before so question of shareholders approval wont come here as application must have been rejected by RBI. I am pretty much sure that Religare must have either applied or was process of applying for name change, as we say there is no smoke without fire. With regard to selling, yes it looks fishy but seen in many such companies employees selling shares, cant comment. Technically speaking stock gone bearish mode below 142 levels and going towards at 122-120 levels in coming day probably. Me too invested at lower levels and betting on new management. All my ears are on care IPO now.
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@sidbest How do you take the resignation of Siddharth Mehta from REL. He is founder of Bay capital and was a key person to start & contribute into Religare turnaround story since 2018.