20 Dec 2023 , 02:24 PM
On December 20, the day after Delhi High Court rejected the declaration of lenders’ exposure to Religare Finvest account as a fraud exposure, shares of Religare Enterprises fell by around 1% in the morning. The stock was trading at Rs 218.25 at 13:50 p.m.
Religare Enterprises announced in a press statement on December 19 that the Delhi High Court had issued an order reversing the finding that Religare Finvest’s account was fraudulent. Religare Enterprises owns all shares in Religare Finvest (RFL).
RFL concluded a One-Time Settlement (OTS) of over Rs 9,000 crore with 17 lenders earlier in March through organic collections, and the announcement further stated that the company is expecting the lifting of the RBI Corrective Action Plan (CAP), which was put into effect in January 2018.
‘Restructuring of RFL cannot be implemented with REL continuing as a promoter, as RFL has been declared fraud exposure by lenders,’ the RBI stated in a release in February 2022. Since then, Religare has refuted the charge. The financial services company’s ‘weak financial health’ has resulted in an RBI cap since 2018.
In Q2FY24, Religare Enterprises’ quarterly net profit decreased to Rs 15.05 crore from Rs 30.43 crore the previous year, a 50.54% decrease. EBITDA increased by 55.13% from Rs 66.12 crore in September 2022 to Rs 102.57 crore in September 2023 for the same period.
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