Malvinder Singh and Shivinder Singh are looking to divest management control in all their key businesses-hospitals, non-banking finance business, health insurance and stock broking, through multiple transactions that will raise around Rs 5,500 crore and enable the Singh brothers to tide over the cash crunch at the group level. “The brothers have decided to sell management control in Fortis Healthcare Limited (BSE:532843), Religare Health Insurance Limited and Religare Securities Limited and eventually in Religare Enterprises Limited (BSE:532915), the holding company for the non-banking finance business,” said a person aware of the development. “The group is expected to sign binding agreements separately for three transactions in the next two months.

The promoters are in talks with three potential suitors to fully divest the stock broking arm of Religare Enterprises. Reliance Capital is the frontrunner, said a person familiar with the development, and the deal size is expected to be Rs 200-250 crore. A Reliance Capital spokesperson declined to comment.

According to persons with knowledge of the situation, the Singh brothers are in discussions with two private equity firms India Value Fund (IVF) and Warburg Pincus. to sell up to 51% stake in Religare Health Insurance with management control. Government guidelines allow for only 49% foreign direct investment (FDI) in the health insurance sector and, therefore, whether they sell 49% or 51% will depend on who the buyer is.