Religare Enterprises Ltd, a financial services company, announced that the company has entered into definitive agreements with Kedaara Capital Fund II LLP and Trishikhar Ventures LLP (jointly referred as ‘Kedaara’ ) for divestment of 6.76 per cent stake in its arm Religare Health Insurance Company (RHICL) for Rs 200 crore.
As per the Company’s exchange filings, “The company has entered into the definitive agreements (share subscription and share purchase agreement and shareholders agreement)…with Kedaara Capital Fund II LLP and Trishikhar Ventures LLP (jointly referred as Kedaara ) for sale of part of the investment in Religare Health Insurance Company Ltd (RHICL), a subsidiary company for a consideration aggregating to Rs 200 crore.”
As per a media report, Anuj Gulati, managing director and CEO at Religare Health Insurance, said the transaction will enable the healthcare insurance unit to increase its investment in technology, distribution and service capability. Rashmi Saluja, non-executive chairperson at Religare Enterprises, said that the deal will help strengthen its position in the financial services business and enable it to achieve its aim of becoming a debt-free company by June 2020.
The transaction is subject to necessary statutory and regulatory approvals and fulfilment of other conditions precedents, the company mentioned. The transaction is expected to be completed by 31 March 2021.
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