The Board of Religare Enterprises met on Saturday, Feb. 17th, 2018 to induct three new Board members. The three new Board members are Mr. Vikram Talwar, a highly experienced banker and entrepreneur; Mr. P. Vijaya Bhaskar, retired Executive Director of the Reserve Bank of India; and Mr. Siddharth Mehta, the founder of Bay Capital Partners. This is subject to normal regulatory approvals.
The company also announced plans to raise additional funds of up to Rs 1200 crore through a combination of equity and debt. The company plans to use the proceeds for investments to bolster its capital and to make investments in subsidiaries as required.
With the induction of the new Board members, Religare has embarked on an urgent effort to populate the Board with highly experienced professionals in the field of finance, corporate governance, corporate strategy and administration.
Mr. Vijaya Bhaskar will chair the Audit Committee while Mr. Ashok Mehta has been appointed interim CEO. The search for a full time CEO and other senior management is being started on an immediate basis with plans for appointments in due course. The Board intends to ensure that the company and its subsidiaries are adequately staffed with highly experienced finance and management professionals.
The changes are at the initiative of a consortium of investors with the objective of instilling the highest levels of corporate governance and effective management in Religare and its subsidiaries.
Mr Vikram Talwar said, "Religare today embarks on a turnaround to achieve growth and profitability backed by strong focus on internal controls and processes as well as the highest levels of integrity and corporate governance. Our first task is to set the house in order by placing a team of high quality professionals to lead the business. We look to make Religare the most trusted brand for our customers, employees and all other stakeholders and are committed to ensuring that their interests are always served."
Mr Vijaya Bhaskar added, 'The company will strive to achieve the highest levels of corporate governance both in letter and in spirit."
As previously announced, Mr. Malvinder Singh and Mr. Shivinder Singh, promoters of the company, have resigned from the Board and have no further association with the company nor any responsibilities for its management and governance.
A special sub-committee of the Board comprising of three new Board members has been appointed to review the entire business of the company and any specific governance issues: Sub-committees of the Board for Audit, Risk, Corporate Governance and Compensation have also been reconstituted. The Board intends to establish a clear long term strategy for the company with- the objectives of ensuring financial stability, prudent growth and strong profitability.
Vikram Talwar is a highly experienced finance professional who worked at Bank of America for 26 years in several senior management roles in Asia and the US. In 2000, he founded EXLHoldings Inc, a major business process outsourcing company that was listed on the Nasdaq in 2006. Amongst his various positions he has been on the board of ING Vyasa Bank from 2011 to 2015. He has also held board positions in various companies in Singapore and the US. Vikram is a MBA from Indian Institute of Management (11M),Ahmedabad and attended St Stephen's College, Delhi.
Siddharth is the founder of Bay Capital with a career spanning over 15 years in asset management. Bay Capital has a highly successful track record of investments in India. Siddharth holds a bachelor's degree in Business Management and Finance from King's College, University of London. He currently serves on the Board of Directors of IL&FS Energy Development Company Ltd and several other private businesses.
P. VIJAYA BHASKAR
P. Vijaya Bhaskar is a career central banker and retired as Executive Director of the Reserve Bank of India. During his long career at the RBI from 1981 to 2011, he was predominantly overseeing the regulatory and supervisory functions of RBI in banking and non-banking. He also worked as the nominee director of RBI in a major public sector bank.
Mr. Ashok Mehta has been a Non-Executive Independent Director of Religare Enterprises Ltd., since January 25, 2018. Mr. Mehta has more than three decades of diversified experience across Legal, Finance, Real Estate & Infrastructure sectors. He has executed an array of Infrastructure & Construction Projects across India and has received awards for Excellence in Leadership for Construction and Design from All India Achievers Foundation, New Delhi. He graduated in Law with Distinction from Lucknow University.
Shares of RELIGARE ENTERPRISES LTD. was last trading in BSE at Rs.60.2 as compared to the previous close of Rs. 57.65. The total number of shares traded during the day was 3300214 in over 6148 trades.
The stock hit an intraday high of Rs. 60.5 and intraday low of 54.8. The net turnover during the day was Rs. 191134783.