Late on Wednesday, Customers Bancorp Inc stated its planned US$51 billion worth of investment to India's Religare Enterprises Ltd. The US based bank said that the investment will include a combination of stake by founders and issuance of share warrants as well as fresh shares for the financial services firm.
Billionaire brother Malvinder and Shivinder Singh are founders of Religare. This was a part of their planned transaction to bring down their holdings in the company to 49%. This will make them qualified to secure a banking license in India.
Customers Bancorp will acquire shares valued at US$22 million from the founders of Religare. It will also invest another US$28 million in preferential share warrants in the company that is convertible within an 18-month period. It will also subscribe to new shares worth US$1 million. This was disclosed by Religare through a statement.
The company did not specify how much the bank would own in Religare after the completion of the transaction.
Join the Conversation