Religare Enterprises drops 2% as lenders move HC over proposed divestment

NEW DELHI: Shares of Religare Enterprises fell over 2 per cent on Tuesday amid reports that some investors holding pledged shares of the company have filed a lawsuit in Bombay HC against Malvinder Singh and Shivinder Singh after the company's promoters proposed that the firm pay Rs 500 crore from divestment proceeds to settle a loan given by Axis Bank to a Religare arm.

Following the report, the stock fell 2.54 per cent to emd the session at Rs 42.25 on BSE.

IDBI Trusteeship Services, who holds the pledged share on behalf of the lenders, for around 17 per cent shares of Religare Enterprises, invoked the pledge last Friday, and is now looking to use the newly acquired shares to veto this proposal that has been put up for voting by shareholders, ET reported.

Religare Enterprises had put up this repayment proposal for shareholder voting which ends on September 9, the report added. The plaintiffs, through their lawsuit, are hoping to get voting rights in the ongoing shareholder resolution proposed to pay off the loan. The suit will also try and obtain a stay till there is clarity on voting rights of the investors.