Religare raises rights issue size to Rs 1,850cr

Financial services provider Religare Enterprises today said it will increase the size of its rights issue to up to Rs 1,850 crore from the existing Rs 1,802.48 crore.

The board of directors at its meeting yesterday approved increasing the size of its proposed rights issue to up to Rs 1,850 crore from existing Rs 1,802.48 crore, Religare Enterprises said in a filing to the Bombay Stock Exchange.

The filing further said that the other terms of rights issue like issue price per share and ratio would be considered and decided at a later stage.

Last year, the company had said it would raise Rs 1,802 crore via rights offering to existing shareholders for general corporate purposes. The board of the company had approved the rights issue price of Rs 355 a share, in the ratio of 2:3, wherein two equity shares would be issued for every three shares held.

Shares of the company reacted positively to the news and surged as much as seven per cent to touch an intra-day high of Rs 343.50 on the BSE. The scrip was later trading at Rs 323.85, up 0.72 per cent on the BSE.

Religare is a holding company of 11 subsidiaries engaged in offering financial services targeted at retail, high net worth individuals besides corporate and institutional clients.