Religare Enterprises' Board okays raising Rs 570 cr via preferential issue
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The Board of Directors of Religare Enterprises Ltd (REL) has approved raising of funds to the tune of Rs 570 crore by preferential allotment of equity shares.
It would issue over 5.41 crore equity shares of the company at a price of Rs 105.25 per share to existing shareholders including the Burman family, Ares SSG Capital and selected new marquee investors, said a company statement.
"The funds raised would be primary utilised as growth capital for investment in its subsidiaries businesses," it said.
Religare Enterprise's Executive Chairperson, Rashmi Saluja said: "Religare Group has successfully turnaround and now we are entering a new era of growth. The current fund raise is a testimonial of recognition of future growth potential of all our businesses, by our key shareholders and new investors."
She said that the company would invest these funds towards growth of all its underlying businesses including Religare Finvest Ltd (RFL), which is undergoing the process of debt restructuring.
"Our health insurance and other businesses are also looking up. I am very thankful to our investors, who kept faith on us and invested in our growth story," Saluja added.
Shares of the company on Tuesday closed at Rs 146.50 on the BSE, higher by Rs 3.40 or 2.38 per cent from its previous close.
