Religare Enterprises, a financial services firm controlled by the Burman family, has announced the appointment of four new directors: Abhay Kumar Agarwal, Arjun Lamba, Gurumurthy Ramanathan, and Suresh Mahalingam. These individuals will be non-executive and non-independent directors, subject to the approval of the Reserve Bank of India (RBI) and the company’s shareholders. This follows the Burman family taking a 25.16% controlling stake in the company earlier this month.
The new directors will bring expertise and fresh perspectives to the company’s board, which will aid in its growth and decision-making process. The appointments will be effective once the necessary regulatory approvals are received.
Separately, the company’s board has decided to suspend the operations of MIC Insurance Web Aggregator Private Ltd, a wholly-owned subsidiary of Religare Enterprises, until a re-evaluation of the business model’s feasibility is completed. MIC, which was previously part of iGear Holdings Private Limited, an affiliate of The Indian Express Group, struggled to scale its operations and achieve profitability due to a lack of additional capital support. The company’s financial position was rendered unsustainable in the competitive landscape. With this suspension, Religare Enterprises aims to re-examine the subsidiary’s business model and identify potential opportunities for growth.
Overall, these developments demonstrate the company’s commitment to strengthening its governance structure and re-assessing its business strategies to drive growth and profitability.