Religare Enterprises has appointed Abhay Kumar Agarwal, Arjun Lamba, Gurumurthy Ramanathan and Suresh Mahalingam as additional directors. They will be designated as Non-Executive and Non-Independent directors after approval of the RBI and shareholders of the company.
The Board had also approved the proposal to shut down the operations of MIC Insurance Web Aggregator, a subsidiary of the company due to its sub-optimal business operations and continued decline in net worth.
MIC, an IRDAI registered insurance web aggregator, became a wholly owned subsidiary of Religare Enterprises on December, 2023. Previously, MIC was an insurance web aggregator belonging to iGear Holdings which was a part of The Indian Express Group.
MIC was not able to scale up its operations and achieve optimum level of revenue and profitability due to lack of additional capital support. With limited scope of growth in a competitive landscape, MIC’s financial position continued to be untenable, said Religare.
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In the light of these considerations, the Board of Directors of REL have approved to suspend the operations of MIC till the re-evaluation of feasibility of the business model and accordingly REL shall impair the investment in MIC in its books.
Moreover, loans extended by REL to MIC in the form of inter-corporate loans of ₹1.41 crore will be written off in the books of the REL.
REL will pay for all other outstanding dues of MIC up to ₹35 lakh and write off the same in the books of accounts of REL.
The Board of REL also directed its subsidiaries to remove Dr Rashmi Saluja and Rakesh Asthaana from their respective Board and Committees.