Religare Enterprises to raise Rs 570 crore from preferential issue

Burman family, SSG & new investors to chip in

Religare Enterprises Ltd (REL) will raise in capital of Rs 570 crore through preferential issue of equity shares to existing shareholders like Burman family, Ares SSG Capital and selected new marquee investors. The funds will be used to grow businesses including lending and health insurance.

The board of directors has approved the 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/share. Its stock closed 2.4 per cent higher at Rs 146.5 per share on BSE.

The funds raised would be primary utilised as growth capital for investment in its subsidiaries' businesses. REL has four key businesses Religare Finvest Limited (RFL) for SME finance, Care Health Insurance Limited (CHIL) – health insurance, Religare Braking Limited (RBL), and Religare Housing Development Finance.

Axis Capital is acting as a sole advisor to the above transaction. The above shall be subject to all requisite permissions, sanctions, and approvals as may be necessary, REL said in a statement.

Religare Group has turned around and now we are entering a new era of growth. The company will invest funds towards the growth of businesses including RFL which is undergoing the process of Debt Restructuring, said REL chairperson Rashmi Saluja.