InGovern Raises Red Flags Over Religare's AGM Postponement

Proxy advisory firm InGovern has raised concerns about Religare Enterprises delaying its 40th annual general meeting without justification. The company dismissed the report as manipulative, and a Sebi probe may be initiated. The delay, intended to re-appoint chairperson Rashmi Saluja, has frustrated shareholders and led to legal action.

Proxy advisory firm InGovern has raised concerns over Religare Enterprises postponing its 40th annual general meeting (AGM) 'without any valid reason' and is seeking a Sebi probe. The company has labeled the report as manipulative.

Regulators may scrutinize the decision-making processes behind the delay, as well as the company's share allotments and Employee Stock Ownership Plans (ESOPs). Religare's chairperson, Rashmi Saluja, labeled the report as a 'malicious attempt' to damage the company's credibility. She asserted compliance with all laws and expressed disdain for the trend of short selling aimed at Indian firms.

Under Saluja's leadership, the company claims to have strengthened corporate governance and stabilized operations, though the deferment of the AGM—set for December 2024—frustrated shareholders. The timing is critical as Saluja, who requires re-appointment, will retire by rotation. The Burman family, holding 25% of Religare, announced an open offer to acquire a 26% stake, intensifying the ongoing battle for management control. Legal proceedings are scheduled for October 21, 2024.

(With inputs from agencies.)