Customers Bancorp Inc. backs out from investment in Religare Enterprises Ltd

Religare Enterprises Ltd has announced regarding Customers Bancorp Inc., ("CUBI"), a full-service bank headquartered in the US, regulated by the Federal Reserve, and trading on the NASDAQ, has agreed to invest upto $ 51 Million in Religare Enterprises Limited ("REL" or the "Company") through a combination of primary and secondary market investment which included an investment for the Indian Rupee equivalent of upto US$ 28 Million of Share Warrants issued by the Company on preferential allotment basis, as per SEBI floor price and as per applicable law. However issue of share warrants was subject to approval of Foreign Investment Promotion Board (FIPB).

FIPB had given its approval on December 03, 2013 allowing CUBI to invest upto US$ 28 million in Company in form of share warrants. As per SEBI ICDR guidelines, the Company had to allot share warrants within 15 days from date of FIPB approval i.e. till December 18, 2013.

But, CUBI has informed the Company that basis guidance received from Federal Reserve and CUBI Shareholders, CUBI Board has directed management not to acquire the Share Warrants. Accordingly, the Company have not received the subscription for the share warrants and no share warrants have been allotted to CUBI.

Shares of Religare Enterprises Ltd was last trading BSE at Rs.319, up by Rs.1.45 or 0.46%. The stock hit an intraday high of Rs.324 and intraday low of Rs.314.

The total traded quantity was 0.85 lakh shares as compared to 2 week average of 0.89 lakh shares.

Source : Equity Bulls

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