(Reuters) – India’s Religare Enterprises on Monday said its board is seeking a governance review of the company and its units, and has also approached the billionaire Burman family for funding support after they took control of the company last month.
The Burman family, who founded and control consumer goods conglomerate Dabur India, acquired control of the financial services provider in February after a 17-month takeover battle.
The objective is to review past operating practices, suggest improvements and to identify any potential instances of misconduct by certain current and/or former employees of Religare and its units, the company said in an exchange filing.
Religare also said it observed a “cash-flow gap” over the next few months and has decided to approach the Burmans for immediate funding support to sustain the operations of the company.
The company did not specify details regarding the extent of the funding.
Previously, Religare, under former executive chairperson Rashmi Saluja, had sought to prevent the Burmans from raising their stake in the company. Saluja was ousted from the board in February as her reappointment did not go through.
(Reporting by Ashish Chandra in Bengaluru; Editing by Janane Venkatraman)
