Religare Enterprises to raise Rs 570 crore from preferential issue

Religare Enterprises Ltd (REL) will raise in capital of Rs 570 crore through preferential issue of equity shares to existing shareholders like Burman family, Ares SSG Capital and selected new marquee investors. The funds will be used to grow businesses including lending and health insurance.

The board of directors has approved the raising of funds to the tune of Rs 570 crore by preferential allotment of 54.15 million equity shares at a price of Rs 105.25/share. Its stock closed 2.4 per cent higher at Rs 146.5 per share on BSE.

The funds raised would be primary utilised as growth capital for investment in its subsidiaries’ businesses. REL has four key businesses Religare Finvest Limited (RFL) for SME finance, Care Health Insurance Limited (CHIL) – health insurance, Religare Braking Limited (RBL), and Religare Housing Development Finance.

Axis Capital is acting as a sole advisor to the above transaction. The above shall be subject to all requisite permissions, sanctions, and approvals as may be necessary, REL said in a statement.

Religare Group has turned around and now we are entering a new era of growth. The company will invest funds towards the growth of businesses including RFL which is undergoing the process of Debt Restructuring, said REL chairperson Rashmi Saluja.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor