Religare to enter Life Insurance segment

Chennai, Oct 25 (UNI) Religare Enterprises Limited, a financial services company, offering a wide range of financial products and services, is all set to enter the Life Insurance segment and foray into mutual funds and asset management sector.

Announcing the company's decision to enter the capital market, its Regional Business Head (south) Mr S Amarnath told a press conference here that the company has formed Religare Insurance Holding Company to enter into a joint venture with Aegon International, a leading global insurance and pension company to enter the Life Insurance sector.

The company also proposed to up a joint venture Asset Management Company (AMC) with Aegon for the mutual funds and AMC business, he said.

He said Religare also signed up a Joint venture with Macquarie bank limited, to expand its wealth management business, wherein Macquarie would become a 50 per cent share holder.

Religare Secuirities Limited (RSL), a company's subsidiary has signed an agreement with Indusland Bank to offer online trading series as well as with Vijay Cooperative bank and Tamil Nadu Mercantile bank to offer offline trading services, he said.

Mr Amarnath said the company was entering the capital market to raise Rs 120 to Rs 140 crores to fund expansion of domestic operations and network of branches. The proceeds would also be used to fund the retail finance business as well as expanding its financial activity.

The company is entering the capital market with its initial public offering of 75.76 lakh equity shares of Rs 10 each at a price to be decided through 100 per cent book building process.

The issue would open on October 29 and close on November one, he added.

The commpany had posted a revenue of Rs 320 crores for the financial year 2007 and registered a net profit of Rs 25 crore. In the first half of the current financial year, it had already earned a revenue of Rs 318 crores and the net profit stood at Rs 35.70 crore, he said.

UNI