The Board of Directors of Religare Enterprises (REL) on Tuesday approved capital raising of ₹570 crore from both existing and new marquee investors.
As many as 5,41,56,761 equity shares of the company will be issued at price of ₹105.25/share to existing shareholders like Burman family and Ares SSG Capital and selected new marquee investors. The funds raised would be primary utilised as growth capital for investment in its subsidiaries businesses, a REL statement said.
REL is the holding company for four key businesses i.e. SME Finance via Religare Finvest (RFL), Health Insurance via Care Health Insurance (CHIL), Retail Broking via Religare Broking (RBL) and Affordable Housing via Religare Housing Development Finance Corporation (RHDFCL).
“Religare Group has successfully turned around and now we are entering a new era of growth. The current fund raise is a testimonial of recognition of future growth potential of all our businesses, by our key shareholders and new investors. 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 and I am positive about the future of that company. Our Health Insurance and other businesses are also looking up. I am very thankful to our investors, who kept faith on us and invested in our growth story,” said Rashmi Saluja, Religare Enterprise’s Executive Chairperson.
Axis Capital is the sole advisor to the this transaction.