Mumbai: The Reserve Bank of India has rejected Religare Enterprises' proposal for sale of two of its subsidiaries-- Religare Finvest Ltd and Religare Housing Development Finance Corp—to TCG Advisory Services.
"...We would like to inform you that the RBI vide its letter dated Mar 20, 2020, addressed to RFL (Religare Finvest), has informed that the request seeking approval of acquisition of RFL by TCG from REL (Religare Enterprises) cannot be acceded to," the company informed the exchanges.
However, it did not specify any reason for the central bank's action. Religare Housing Development Finance Corp is a subsidiary of Religare Finvest.
In July, the company had said it is planning to sell its entire stake in Religare Finvest and Religare Housing Development Finance Corp to TCG Advisory.
The company was planning to sell its stake for 3.3 bln rupees, it had informed exchanges in October. With the latest development, the share-purchase agreement between Religare Enterprises and TCG Advisory stands terminated, the company said.
RBI has further asked the company to submit the revised proposal for the stake sale. As on Mar 31, Religare Enterprises held 84.29% stake in Religare Finvest, a nonbanking finance company focused on lending to small and medium enterprises.