Preferential issue: Religare Enterprises to seek shareholders’ nod on July 3

Religare Enterprises Ltd (REL), which is on a turnaround path, will seek shareholders’ nod for its proposed ₹570 crore preferential issue at an extraordinary general meeting (EGM) slated for July 3.

Shareholders’ nod is being sought through a special resolution at the EGM, which will be held via video conferencing, sources said.

Under the preferential allotment, as many as 5,41,56,761 equity shares of REL will be issued at price of ₹105.25 per share to existing investors including Burman family and Ares SSG Capital, a global fund, as well as new marquee investors.

Already, REL has said that it will infuse ₹411 crore (out of ₹570 crore to be raised) as equity capital in Religare Finvest and the remaining ₹160 crore will be infused in its housing finance and equity broking arms.

Also read: Religare Enterprises to infuse ₹411-crore capital into NBFC arm Religare Finvest

Meanwhile, both the Bombay Stock Exchange and the National Stock Exchange have approved REL’s application of reclassification of erstwhile Promoters and Promoter Group – Malvinder Mohan Singh, Shivinder Mohan Singh, Japna Malvinder Singh, Aditi Shivinder Singh, Abhishek Singh, RHC Finance, RHC Holding and PS Trust – as public shareholders.

With this change, there is now no identifiable promoter group for REL. REL now has a diversified set of shareholders and institutional investors and since last few years, the company is being run by a professional Board and Management.

Commenting on the stock exchanges’ approval for reclassification of erstwhile promoters, Rashmi Saluja, Executive Chairperson, REL said, “The current reclassification has done justice to the company and its highest set of corporate governance standards, which have laid foundation of Religare 2.0. It’s a huge boost for all stakeholders and recognition of the new identity of Religare”.

Also read: Religare Enterprises Board approves ₹570-crore fundraise via preferential issue

Nearly 80 per cent of REL’s planned ₹570 crore capital mop-up will come from existing investors. Burman family is investing ₹175 crore, taking the family’s shareholding in REL to 14.5 per cent from 11 per cent now. Ares SSG Capital is pumping in ₹75 crore in the preferential issue, taking its shareholding from 6.8 per cent to 8 per cent.

REL is the holding company for four key businesses i.e. SME Finance via Religare Finvest Limited (RFL), Health Insurance via Care Health Insurance Limited (CHIL), Retail Broking via Religare Broking Limited (RBL) and Affordable Housing via Religare Housing Development Finance Corporation Limited (RHDFCL).

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