Singhs make Religare open offer at Rs 457 a share

The promoters of Religare Enterprises, Malvinder Mohan Singh and Shivinder Mohan Singh, today made an open offer to acquire about 28 million shares of the financial services company at Rs 457 a share. The promoters will have to pay about Rs 1,280 crore for raising their stake in the company.

The open offer represents 21.7 per cent of the current share capital and 20 per cent of the diluted share capital in Religare, said a statement from Kotak Mahindra Capital, which is managing the offer.

The specified date for the offer is September 3. It will open on October 13 and close on November 1. The shares will be acquired by two promoter group entities, RHC Finance Pvt Ltd and RHC Holding Pvt Ltd. On Tuesday, Religare had said its promoters would spend Rs 857 crore to acquire another nine per cent stake in the company via shares, preferential allotment and warrant conversion. This will result in the promoter holding in Religare going up to 65.79 per cent from 57.1 per cent at present. If the promoters get another 21.7 per cent stake through the open offer, the total acquisition cost will rise to over Rs 2,100 crore.