Religare Entp sings as "Singhs" leave!

Religare Enterprises rose almost 5% today to Rs.63.20 and remains firmly amongst the top five gainers on the BSE currently. Volumes are pretty robust at almost 11 lakh shares changing hands in the opening bell session.

The market is probably heaving a sigh of relief that its founders, Malvinder and Shivinder Singh, facing a long list of accusations, mainly of siphoning off funds, have stepped down. The company has issued a statement stating that the Singh brothers have resigned from the board of Religare Enterprises. They now have neither any further association with the company nor any responsibility for its management and governance. Whew!

As part of a management revamp to help rebuild investor confidence in the company, it has appointed Ashok Mehta, an independent director, as the interim CEO, while also naming Vikram Talwar and a former central bank official, P Vijaya Bhaskar, as independent directors. Siddharth Mehta, founder of Bay Capital Partners, will be a non-executive, non-independent director.

Also, the company stated that it plans to raise as much as Rs.1200 crore  via a mix of equity and debt to bolster capital and make investment in its units.