Religare Enterprises’ Religare Finvest (RFL) paid its creditors Rs 2,178 crore as part of a one-time settlement (OTS). Along with its parent company Religare Enterprises, RFL executed the OTS agreement with its lenders on December 30. RFL has settled its outstanding dues, including unsecured exposures. Therefore, repayment has given the management much strength to move forward with fundraising plans, said Rashmi Saluja, an Executive Chairperson of Religare Enterprises.
Saluja said now is the time for Religare’s businesses to unlock their value. To raise funds, the company will explore IPOs and other alternatives. Additionally, it will ensure that all businesses comply with the Insurance Regulatory and Development Authority of India (IRDAI) and Reserve Bank of India (RBI) regulations.
NBFC (Non-Banking Financial Companies) is planning to raise Rs 600-700 crore within the next few months and has repaid loans three weeks ahead of schedule. As a result of its weak financial health, RFL has been under RBI’s Corrective Action Plan (CAP) since January 2018. The NBFC had a debt of approximately Rs 5,300 crore to a consortium of lenders, with the State Bank of India (SBI) leading the group. On Thursday, shares of Religare Enterprises closed 2.40 per cent higher at Rs 158 each.
Now moving forward, let’s know how Religare Enterprise benefits its parent company Religare Health Insurance, and its unlisted share, along with its overview, business model and business performance:
How Will The OTS Payment Benefit Religare Health Insurance?
By the completion of the OTS payment of the parent company, Religare Health Insurance will get benefits in many terms like:
- It would be feasible to participate in new investments in the grey market. Furthermore, the company could contemplate introducing more products like “Maternity Insurance” in the grey market to enhance its participation.
- Religare Health Insurance can also expand its business globally by actively participating in the market. Additionally, they could consider planning for an IPO.
- Moreover, the engagement of Religare Health Insurance will be further enhanced in the market through the increase in demand for its unlisted share price due to the OTS payment made by Religare Enterprises.
A Company Overview: Religare Health Insurance
Religare Health Insurance is a specialised health insurer firm that offers insurance services to individuals or corporate employees and promotes financial inclusion. This company was established in 2012 and is owned by Religare Enterprises Limited, Union Bank and the Corporation Bank. Moreover, Religare Health Insurance offers various products catering to retail and corporate sectors. These include health insurance, critical Illness coverage, personal accident insurance, top-up coverage, international travel insurance, and maternity coverage. They also provide corporate clients with group health insurance and group private accident insurance.
Business Performance: Religare Health Insurance
- Religare Health Insurance Gross Domestic Premium Income (GDPI) experienced a remarkable increase in the financial year ending March 2021, soaring to Rs. 2,559 Crores from Rs. 1,975 Crores (excluding Ayushman Bharat) – a growth of 29.5% compared to FY 19-20.
- The company’s Profit After Tax (PAT) also witnessed an outstanding rise, reaching Rs. 102 Crores with a growth rate of 55.7%.
- Holding one of the highest solvency ratios in the industry at 2.45, Religare Health Insurance surpasses the minimum regulatory requirement of 1.50x, showcasing its strong capitalisation.
- The organisation has raised multiple inventive products like Care Advantage, Corona Kavach, Aarogya Sanjeevani, Covid Care, Group Care 360, Explore V2 and Care Shield add-on.
- Last year witnessed the expansion of the Religare Health Insurance network with four new branches, bringing the total branch count to 158. The company employs around 9,904 permanent staff members and has increased its agent base – an advanced asset for insurance companies – from 1,32,474 to 1,69,183.
- Care Health Insurance partners with over 16,000 healthcare providers within its network to deliver seamless cashless services to its customers.
Why It Is A Good Decision To Invest In Religare Unlisted Shares?
|Total Available Shares||500|
|Face Value||₹ 10 Per Equity Share|
|Lot Size||100 Shares|
|Current Unlisted Share Price||₹ 180 Per Equity Share|
Currently, investors are highly attracted towards Religare unlisted shares due to the minimum risk. These pre-IPO equities showcase the most vital businesses and unicorns that have yet to go public. One such company is Religare Health Insurance Limited, which makes its unlisted shares accessible to every investor through the unofficial market. Moreover, investing in Religare unlisted shares is an intelligent decision that promises excellent returns and is considered an optimal strategy for long-term portfolio diversification.
As mentioned in the above blog, the OTS Payment of Religare Enterprise will benefit the Religare Health Insurance company. So investing in this company is the best option for long-term profits. Now you may search for a platform you should trust to buy unlisted shares. At Stockify, India’s leading unlisted shares brokerage platform, there is a team of experts to guide you in investing in high-ROI unlisted shares from top-performing pre-IPO companies.