Religare to hike promoter stake to 65.79 per cent
24 August 2010
The board of Religare Enterprises Limited has approved preferential allotment of additional equity shares forming 8.028 per cent of the equity share capital of the company to its promoters.
Religare promoters Malvinder Mohan Singh and Shivinder Mohan Singh have proposed to increase their stake in the company to 65.79 per cent from the existing 57.10 per cent.
The promoters are planning to infuse around Rs500 crore in the company to consolidate their stake as the company goes for further equity and debt issues.
The shares are proposed to be acquired through an investment company through a combination of preferential allotment of equity (4.014 per cent) amounting to Rs250 crore and an equivalent number of convertible warrants for a like amount as also an open market purchase of 5.58 per cent equity shares for a total of Rs357 crore.
The promoters will then come up with an open offer to acquire another 20 per cent stake of the fully-diluted equity capital of Religare as prescribed in the SEBI (Substantial Acquisition of Shares) Regulations, the company said in its announcement.
The open offer is likely to be priced at Rs445 per share, which is likely to be announced within four days.
"I am happy by this decision of Malvinder Mohan Singh and Shivinder Mohan Singh as it will bolster our plans of making Religare a leading global financial services player from the emerging markets. This move shows their unswerving faith in the management team and their commitment to Religare," Sunil Godhwani, Chairman and managing director of Religare Enterprises Ltd, said.
Religare board is armed with an enabling resolution to raise up to Rs2,000 crore. This will be done through a mixture of equity and debt, the company