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Baring Asia, Apollo Global Management eye Religare; deadline for final bids extended to month-end

Baring Asia, Apollo Global Management eye Religare; deadline for final bids extended to month-end
Baring Asia and Apollo Global Management are in race to take over Religare Enterprises (REL) as Malvinder Singh and Shivinder Singh are exiting their financial services flagship.

The brothers have been looking to sell the entire holdings or minimum 51% stake in REL since May, seven years after cashing out of their flagship pharma operations Ranbaxy.

Economic Times reported that the current market capitalisation of Religare Enterprises was Rs 5,626.31 crore, down around 15% from May when the sale process was launched.

Meanwhile, Baring Asia and Apollo Management are conducting detailed due diligence.

When contacted, a Religare spokesperson told ET, "As a matter of policy we don't comment on hearsay and market sources. However, as we have stated earlier, basis a clearance from our board last year we are evaluating various strategic alternatives to raise primary capital and also further institutionalize our shareholding to support our future growth trajectory. To comment and arrive at any conclusions beyond this based on your sources would be baseless, speculative and highly presumptuous."

Baring Asia spokesperson did not comment on the issue.

However, an official involved directly told the financial daily that there was no guarantee that the negotiations will translate into a deal.
Meanwhile, industry experts expressed that Religare could not achieve the goal of becoming an ‘Indian Merrill Lynch.

ET stated that only pockets of Religare's businesses are profitable with the SME focussed NBFC and global asset management arm.

(Image: Indiatimes)

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