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Our Bureau

Mumbai, Oct. 30 Broking firm Religare Enterprises, promoted by Mr Malvinder Singh of Ranbaxy, announced on Thursday that it planned to go in for a rights issue of shares to raise Rs 1,802 crore.

The rights issue of two shares for every three shares held (2:3) will be at a price of Rs 355 a share. The company’s share closed at Rs 328, up 0.92 per cent, on Wednesday on BSE.

Analysts were surprised by the company’s plans to enter the market at a time when the rights issues of companies such as Tata Motors and Hindalco could not stir up investors. However, the promoters of Religare have agreed to pick up the unsubscribed portion.

“The promoters have given a firm commitment to subscribe to the unsubscribed portion, if any, of the said rights issue,” the company said in a statement.

Religare will use the proceeds from the rights issue to “propel its future growth plans both international and domestic,” said a company official.

The broking firm, which got listed in last November, said it will file the draft letter of offer with SEBI in the first week of December 2008. The net worth of the company is expected to go up to Rs 2,400 crore after the rights issue.

The company recently acquired Hichens, Harrison and company, the oldest broking and investment firm in London.

Mr Malvinder Singh and other promoters recently sold their stake in Ranbaxy to Japan’s Daiichi Sankyo Company for $4.6 billion, in one of the biggest corporate deals in the country.

The promoters of Ranbaxy, the Singh brothers, have also brought their health care services business under the Religare brand by renaming Fortis HealthWorld as Religare Wellness.

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