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Religare enterprises Ltd is promoted promoted by Mr. Shivinder Singh and Mr. Malvinder Singh of the Ranbaxy Group. It is a financial services company offering financial products to retail, HNI, corporate and institutional clients.

REL’s business is divided into 3 broad spectrums – Retail, Wealth and Institutional. A pan India presence – 1,217 business locations, 392 towns – give it advantage to scale up operations, explore new distribution opportunities and increase client reach. In order to support its increased network REL has aggressively ramped up employee strength from 4,500 in FY07 to 6,500 currently.

The company plans to be in every business where Reliance Capital and ultimately wants to compete with ADAG group. Religare has been profitable and is expected to report a PAT of Rs 98 crore for FY08. Fully diluted EPS [Post-IPO] for FY08 is expected to be around Rs 12.80. At 14.4x FY08 earnings and 2.2x its book value of Rs 83.8, the issue is priced moderately.

The company has done preferential allotment to institutional investors at Rs 160 / share in Jan and Oct-2007. So investing at Rs 185 is not a bad option. Apply only if you are lucky because allotment will be by Lottery.