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Religare Enterprises Ltd (REL) Board will meet on June 8 to consider fund-raising to, among other things, infuse capital into its wholly owned subsidiary Religare Finvest Ltd (RFL) and other businesses, Rashmi Saluja, Chairperson, REL, said on Friday.
Saluja, however, declined to comment on the mode of fundraising and the quantum being looked at by REL. It could be through a rights issue or a preferential allotment to investors or even a combination of both, sources said.
“We are happy about the positive developments of the debt restructuring process of Religare Finvest Ltd ( RFL). Religare Enterprises Ltd, continuing as promoter of RFL, shall be a testament towards the merit of the organisation and win-win for all.
“Religare Enterprise is also looking to raise funds to infuse capital into RFL and our other businesses. These are very exciting times for all of us and we are confident of being on the right growth trajectory and resurrecting Religare group”, Saluja told BusinessLine when contacted.
Board meet agenda
The REL board plans to discuss fund-raising at its June 8 meeting sparked a sharp rally in its stock price, which climbed nearly 20 per cent to close at ₹142.4 on Tuesday, up ₹23.7 over the previous day’s close.
There is now wide speculation that the Tuesday board meeting could see discussions around enabling existing investors such as the Burman family getting a larger stake in the company.
REL bringing an external investor also cannot be ruled out, sources said.
RFL rejig
REL going in for a fund raise comes at a time when there are signs of positive development around the fresh debt restructuring process (DRP) being pursued by RFL, which is still barred by the RBI from undertaking fresh business.
The fact that the revised DRP — with REL continuing as the promoter of RFL — is now under the consideration of the lead banker State Bank of India, has raised hopes of the entire RFL debt restructuring getting over by August this year, sources added.
Between last January and May this year, REL, through RFL, is understood to have repaid debts amounting to ₹6,900 crore and still had an outstanding debt of ₹4,200 crore.
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