New Delhi [India], June 3 (ANI/NewsVoir): Religare Enterprises Limited (REL), the Core Investment Company (CIC) that caters to customers across a wide spectrum of financial services, through its subsidiary companies across Lending, Broking and Insurance, today announced another milestone achievement as it went external debt-free.
The just-concluded Kedaara transaction with a total investment of Rs 567 crore has helped REL become external debt-free. Part of the proceeds has been utilized towards payment of the full and final settlement of Rs 153 crore to Axis Bank and this transaction will enable REL to reflect a zero external debt position in its books.
"We are pleased to announce that even in the most difficult of times we are fulfilling all our commitments. The settlement of our financial dues, much ahead of the prescribed time frame, demonstrates our commitment to resolve all legacy issues and move forward on the path to revival. We are thankful to everyone who has stood by us in our tough times," said Dr Rashmi Saluja, Executive Chairperson, Religare Enterprises Limited.
"While there were many headwinds and legacy issues, we have successfully resolved most of them, and others are on the path to resolution. Among them, the Axis settlement stands out as an important milestone as it has made Religare Enterprises external debt-free," said Nitin Aggarwal, CFO, Religare Enterprises Limited.
"REL has been on a course correction mode for the last two years and we are steering the ship to ensure that all businesses perform to their full potential and accelerate growth," he added.
After achieving the important external debt-free milestone, the Company is well-positioned to address all the requirements of other subsidiary businesses as well.
The healthcare insurance business is growing at almost 50 per cent CAGR over the last three years, and REL expects it to continue to grow at the same rate going forward. The broking business has stabilized and has started growing in FY20-21.
Basis the above and the strong underlying group financial position thanks to long term measures undertaken by the new Board and management, REL is looking at a turnaround in FY20-21.
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