Religare Enterprises plans to raise Rs 2,500 cr

Religare Enterprises Ltd plans to raise Rs 2,500 crore through issue of fresh capital.

At an EGM held on March 12, the shareholders approved the preferential issue of 96 lakh shares to Hospitalia Information Systems Pvt Ltd, a wholly owned subsidiary of RHC Finance Private Ltd, a promoter group company, for an aggregate amount up to Rs 405 crore.

The company said that the board of directors on March 12, in continuance with the approval of shareholders, has approved the raising of funds up to Rs 2,500 crore through issue of fresh capital.

The company’s subsidiary Religare Finvest Ltd has secured corporate agency licence from the Insurance Regulatory and Development Authority for the procurement/solicitation of life-insurance business on behalf of AEGON Religare Life Insurance Company Ltd.

On the NSE, the company’s scrip was trading at Rs 385 (face value Rs 10) with about 14,180 shares being traded. But in relation to its Q3 performance, the company’s share price appears to be stretched, even while being close to its 52-week low. The share touched its 52-week low of Rs 375 on January 23 this year and its 52-week high is Rs 536 (April 21, 2011).

According to the unaudited financial results for the quarter ending Dec 31, 2011, the total income was Rs 4.46 crore and the net loss was Rs 58.01 crore. The paid-up share capital was Rs 139.70 crore. EPS for the quarter stood at -Rs 4.30.

The promoters’ holding is about 70 per cent and about 37 per cent of the promoters and promoters’ group total shareholding is pledged.

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