Religare Enterprises board approves raising funds via preferential issue

Religare Enterprises said the board of directors of the company has considered and approved approved raising of funds to the tune of Rs. 570 crore by preferential issue.

Religare Enterprises said the board of directors of the company has considered and approved raising of funds through preferential issue of shares by issuing up to 5.41 crore equity shares of the company at an issue price of Rs. 105.25 per share on a preferential basis to existing shareholders like Burman family & Ares SSG Capital and selected new marquee investors.

The funds raised would be primary utilised as growth capital for investment in its subsidiaries businesses.

Religare Enterprises is the holding company for four key businesses i.e. SME Finance via Religare Finvest Limited (RFL), Health Insurance via Care Health Insurance Limited (CHIL), Retail Broking via Religare Broking Limited (RBL) and Affordable Housing via Religare Housing Development Finance Corporation Limited (RHDFCL).

"We would invest these funds towards growth of all our underlying businesses including Religare Finvest Ltd (RFL) which is undergoing the process of Debt Restructuring", Religare Enterprise's Executive Chairperson Dr. Rashmi Saluja said.

The announcement was made after market hours yesterday, 8 June 2021. Shares of Religare Enterprises rose 2.37% to settle at Rs 146.50 yesterday.

Religare Enterprises, a Core Investment Company (CIC) registered with Reserve Bank of India (RBI), is a diversified financial services company. The company offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Affordable Housing Finance, Health Insurance and Retail Broking.

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