Customers Bancorp Inc to invest in Religare Enterprises

NEW DELHI (TIP): US-based Customers Bancorp Inc (CUBI) has agreed to invest $51 million (about Rs 300 crore) in various securities of banking licence aspirant Religare Enterprises Ltd. The investments will take place through a combination of primary and secondary market transactions. The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.

It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions. The CUBI Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the company. Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI guidelines for licensing of new banks in the private sector. Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt. “We are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global banking will be extremely supportive in our banking foray.We are confident that the proposed association will further strengthen Religare’s endeavour to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statemen.

- Advertise Here Call +1 646 247 9458 -

Trending (48 Hours)


Midweek blues anyone?Kiss them goodbye and read this. Deepika Padukone showered some twitter love on her 'Padmavati' co-star Shahid Kapoor, much to the amusement...
- Advertise Here Call +1 646 247 9458 -