Delayed restart of lending business at RFL
Management could not provide a timeline for restarting lending operations, citing leadership hiring still in progress.
RELIGAREENTERPRISES / bear-case history
Track the concerns that keep returning.
Religare Enterprises · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Uncertainty around LVB deposit recovery
The ₹750 crore LVB deposit is fully provisioned; recovery depends on court proceedings with no timeline.
One-time labor code provisions impacting profitability
The new labor code led to one-time provisions across segments, affecting reported profits.
Promoter shareholding in Care below regulatory threshold for reverse merger
Promoter look-through shareholding in Care is ~19%, below the 25% required for a reverse merger, limiting future restructuring options.
Promoter stake in Care may not meet IRDAI requirement
Promoter shareholding in Religare is ~30.3%, but post-demerger, Care's promoter holding may fall short of the 26% regulatory requirement, raising concerns about compliance.
Holding company discount persists
The demerger structure may not eliminate the holding company discount, as Care remains a subsidiary of a listed entity, potentially undervaluing the stock.
NBFC ramp-up execution risk
The NBFC business is still in preparation phase with no clear timeline for disbursement growth, posing execution risk.