Burman Family Steps Up to Secure Religare's Financial Future

Religare Enterprises Ltd seeks immediate funding support from the new promoter, Burman family, to sustain its operations. The board has initiated a governance review and identified a cash flow gap. A short-term Inter Corporate Loan from the Burman Group is recommended to address funding requirements.

Religare Enterprises Ltd (REL) announced on Monday that its board has called on the new promoters, the Burman family, for urgent financial assistance to continue their operations smoothly.

The board has initiated a governance review of REL and its subsidiaries, including Religare Finvest Limited and Religare Housing Development Finance Corporation Limited. This review aims to evaluate past operations, recommend improvements in systems and controls, and identify any misconduct by current or former employees.

Noticing a cash flow gap in the coming months, the board has decided to seek immediate funding support from the Burman Group. They have recommended a short-term Inter Corporate Loan as the best course of action. The Burman family holds a 25.16% stake in REL through four entities, having increased this stake last month.

(With inputs from agencies.)