Religare Enterprises up 6% on getting nod from BSE, NSE for warrants issue

Religare Enterprises shares gained 5.8 per cent on Thursday, after the BSE and the National Stock Exchange (NSE) approved the issuance of warrants on a preferential basis

Religare Enterprises shares gained 5.8 per cent on Thursday and registered an intra-day high at ₹267.75 per share on BSE. At 11:58 AM, on BSE, Religare Enterprises’ share price was trading 4.11 per cent higher at ₹263.35 per share. In comparison, the BSE Sensex was up 0.45 per cent at 80,932.09.

 

The market capitalisation of the company stood at ₹8,707.76 crore. The 52-week high of the stock was at ₹319.9 per share, and the 52-week low was at ₹202.45.

Why did Religare Enterprises' shares rise in trade? 

The buying on the counter came after the BSE and the National Stock Exchange (NSE) approved the issuance of warrants on a preferential basis. 

 

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The company can issue 6,38,29,782 warrants convertible into an equivalent number of equity shares, at a price of ₹235 per warrant. The total issue size of said warrant is up to ₹1,500 crore.

 

“The Exchange hereby grants its 'in-principle' approval for the aforesaid issue. This 'in-principle' approval should not be construed as our approval for listing of aforesaid security, and you are required to duly and separately comply with the requirements in respect thereof,” BSE filing read. 

 

Similarly, “We are in receipt of your application regarding In-principle approval for issue of 63829782 Equity shares of ₹10 each to be allotted pursuant to conversion of warrants to be issued on Preferential Basis in terms of Regulation 28(1) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. In this regard, the Exchange is pleased to grant in-principle approval for the said issue,” the NSE filing read. 

 

Religare Enterprises, in July, secured a ₹1,500 crore growth capital commitment from a group of marquee investors, led by the Burman family of Dabur, which is also the company’s promoter group. The capital was to be raised via a preferential allotment of convertible warrants at ₹235 per share.

 

The Burman family, owners of Dabur and promoters of Religare, will contribute ₹750 crore, half of the total infusion, demonstrating continued commitment to the financial services firm.

 

The remaining ₹750 crore will be invested by high-profile names, including the Hindustan Times (HT) Media Group, investor Ashish Dhawan, and JM Financial.