Religare Enterprises Ltd said late on Wednesday US-based bank Customers Bancorp Inc will invest $51 million in the financial services firm through a combination of stake sale by founders and issue of share warrants and fresh shares.
The transaction is part of a plan by Religare’s founders,billionaire brothers Malvinder and Shivinder Singh,to bring down their holding to 49 per cent in order to qualify for a banking licence in India.
Pennsylvania-based Customers will buy shares worth $22 million from the founders. It will invest another $28 million in preferential share warrants in Religare,convertible within 18 months,and subscribe to fresh shares worth $1 million,Religare said in a statement.
It did not specify how much Customers Bancorp would own in Religare after the transaction.
The Reserve Bank of India issued guidelines in February allowing any type of company to set up a bank.