RELIGARE INDUCTS THREE NEW BOARD MEMBERS
|Religare Enterprises to raise up to Rs 1200 crore|
|Vikram Talwar, Vijaya Bhaskar and Siddharth Mehta appointed to the Board|
|Ashok Mehta appointed interim CEO.|
NEW DELHI, FEBRUARY 17, 2018: 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 allegations made by the plaintiff in the suit referred to in the article are categorically denied. All the allegations made are completely baseless and have been appropriately responded to by Religare in the Hon’ble High Court of Delhi. However, the same does not find any mention in the said news article.
It is pertinent to note that the private equity investors in Religare Finvest Ltd, including the plaintiff named in the news article- Resurgence- had their nominees appointed on the Board of Religare Finvest Ltd at the time of their investment. Such nominees continued to be the directors of Religare Finvest Ltd for a period of four years and five years respectively during which time the Promoters were neither on the Board of Religare nor responsible for the Management/Operation of the company. The Promoters had to be appointed on the Board of the holding company in July 2016 due to concerns about the governance practices of the company during the said period when the PE investor nominees were on the Board of the company. Then, it is extremely audacious on the part of such parties to have made the claims and assertions that they have made in their legal proceedings.
Despite the Promoters and the Company having suffered significantly in financial and reputational terms, they are making efforts to bring in new investors and partners that would help Religare grow. Current investors and stakeholders are requested to enter a dialogue with the company and promoters in this endeavor rather than using diversionary tactics to divert attention from their own acts and omissions. Attacking and blaming the promoters for one’s own failures especially in fulfilling their fiduciary duty appears to be the strategy that some investors adopt in order to save face.
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 EXL Holdings 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 (IIM), 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.
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