Religare board seeks funds from Burman family and commissions governance review

Religare Enterprises on Monday, March 17, said its board has commissioned a good governance review of the firm and its subsidiaries-- Religare Finvest Limited and Religare Housing Development Finance Corporation Limited.

For conducting this review, the Board of Directors have resolved to engage a law firm, Trilegal, which would be assisted by Grant Thornton Bharat LLP.

Further, the Religare board has reviewed the fund flow position of the company and observed a cash flow gap over the next few months. “After examining the various options, the Board has unanimously decided to approach the new promoters, the Burman Group, for immediate funding support to sustain the operations of the company,” it further said in the filing.

To address the funding requirements, the board has recommended a short-term intercorporate loan (“ICL”) from the promoter group or its associate entities to address the funding support.

The report comes almost a month after the Burman family acquired a controlling stake in Religare Enterprises. On February 21, 2025, the Burman family had acquired a controlling stake in REL after the completion of the open offer, and its shareholding post the acquisition stands at 83,201,819 equity shares, representing 25.16%.

The Burmans had made an open offer for acquisition of up to nine crore equity shares representing 26% of REL's stake from public shareholders. The acquisition has been made through Burman family-owned entities M.B. Finmart Private Limited (MFPL), Puran Associates Private Limited (PAPL), VIC Enterprises Private Limited (VIC), and Milky Investment & Trading Company (MITC).

Shares of Religare Enterprises settled at ₹235.20 apiece, declining 2.99% on the National Stock Exchange. Its total market capitalisation stood at ₹7,775.85 crore.