Religare Enterprises, a private sector financial services company, has hired Deloitte Touche Tohmatsu Limited (DTTL) to undertake a comprehensive governance review of its board, including its structure, composition, and functioning. The review aims to strengthen the company’s corporate governance practices and ensure compliance with regulatory requirements.
As part of the review, the Deloitte team will assess Religare’s board oversight, risk management, and compliance functions, as well as its relationship with promoters and stakeholders. The review will also focus on identifying areas of improvement and making recommendations for enhancing the company’s governance framework.
It’s worth noting that the government has been pressing Indian companies to improve their governance standards, and Religare is no exception. The corporate governance review is seen as a strategic move by Religare to demonstrate its commitment to good governance practices and to avoid any potential pitfalls.
Meanwhile, Religare has also sought funding from its promoters, the Burmans, to support the company’s growth and business plans. The Burmans, who own 54.02% stake in Religare, have committed to invest an additional INR 500 crore (approximately USD 70 million) in the company, subject to certain conditions. This investment will help Religare scale up its business, fortify its balance sheet, and enhance its financial flexibility.
The funding from the Burmans is seen as a significant development, as it demonstrates the promoters’ confidence in the company’s future prospects and their commitment to supporting its growth. The injection of fresh capital will also provide Religare with the necessary resources to upgrade its technology, enhance its risk management practices, and invest in new business opportunities.
The dual purpose of the corporate governance review and the funding from the Burmans is to position Religare for long-term growth and success, while also avoiding any potential regulatory or reputational risks. By strengthening its governance practices and securing additional funding, Religare can focus on its core business objectives and create long-term value for its shareholders.