Religare Enterprises plans to invest over Rs 100 crore in the housing finance business and the broking unit out of Rs 570 crore of equity capital it will raise from investors, including the Burman family.
The broking venture, with a focus on the retail segment, will grow organically and also look at inorganic opportunities, REL Chairperson Rashmi Saluja said.
The board of directors on June 8, 2021, approved 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 per share.
Axis Capital is acting as a sole advisor to the above transaction. The transaction is subject to requisite permissions, sanctions and approvals as may be necessary.
Besides, the Burman family, existing investors like Ares SSG Capital and selected new marquee investors would infuse money.
REL has four key businesses Religare Finvest Limited (RFL) for SME finance, Care Health Insurance Limited (CHIL) – health insurance, Religare Broking Limited (RBL) and Religare Housing Development Finance.
The housing business, which is a subsidiary of RFL, also needs capital to scale up business, especially lending for affordable homes, Saluja said.
The company will invest over Rs 400 crore towards the growth of RFL which is undergoing debt restructuring. The country's largest lender State Bank of India is leading the consortium of lenders involved in the debt recast.
Saluja said the company is expecting the debt recast to be complete by August and will be able to do full-fledged business from the second half of the current financial year. It would also approach the Reserve Bank of India for approvals, Saluja said.