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Religare Enterprises has clarified that the proposal to infuse ₹15 crore in its wholly-owned subsidiary MIC Insurance Web Aggregator Private for its growth and expansion was in line with the ordinary business of REL as a ‘core investment company’.
On the proxy advisory firm InGovern report asking investors to vote ‘against’ the investment proposal, REL said the report was incomplete and made on incorrect understanding. The unwarranted rush to publish the report without having the discussion (as promised by InGovern) seems to be a deliberate attempt to adversely influence the shareholders’ rational evaluation and decision on the MIC resolution, it said
The company said all relevant disclosures required under statutes and applicable laws for the proposed resolution have been made. The claim in the report by InGovern that there are missing disclosures about financials and valuation of MIC was incorrect.
Financials consolidated
The financials of MIC have been consolidated with REL as December quarter and the standalone financials will be released henceforth. The statutory regulations applicable for unlisted companies concerning valuation at the time of issuance of equity securities will be duly followed by MIC as and when the capital is proposed to be infused, it said.
REL said MIC does not have any external debt currently and no current debt-service records required to be disclosed.
REL categorically clarified that the Religare Group does not have any existing insurance broking business.
The InGovern Report states that there is “uncertainty” and an “imminent change in promoters and management which may take place post takeover by Burman group” as the rationale for the negative voting recommendation.
“As is available in the public domain already, the Open Offer by the Burman group entities for takeover of the REL is subject to various regulatory approvals. In this light, the references made in the Report are grossly incorrect and misrepresenting to the public at large,” it said.
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