Religare Enterprises to raise Rs300 crore via rights issue

19 Sep 2022 , 09:35 AM

Rashmi Saluja, executive chairman of Religare Enterprises Ltd., stated that the company plans to raise Rs300 crore through a rights issue to expand its health insurance business.

“As a promoter and a significant stakeholder, REL is dedicated to fully subscribing to its share. In 2020, equity of Rs567 crore was already raised from Kedara Capital, which comprised the main infusion in Care Health Business, and has been increasing at a pace of 40% per year,” Saluja stated.

It also raised Rs570 crore from long-term marquee investors through a preferential issuance in July 2021. The funds were invested in a variety of verticals in order to expand its broking and housing businesses.

Religare was founded by brothers Malvinder and Shivinder Singh, who are facing fraud accusations, and is overseen by a new management team and an independent board that is professionally managed.

Since the takeover, the business has been attempting to put historical concerns behind it and map a course for its financial services segment through a multi-pronged strategy.

The company managed to pay Rs8,500 crore to banks despite covid and has become debt-free.

At around 9.40 AM, Religare Enterprises was trading at Rs162.45 up by 0.78% from its previous closing of Rs161.20 on the BSE. The scrip opened at Rs159.70 and touched intraday high and low of Rs165.10 and Rs159.70 respectively.

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