Religare Enterprises to raise Rs916 crore though preferential issue

Religare Enterprises has approved raising of Rs 916.42 crore through a preferential issue of warrants of upto 17.56 lakh of Rs52.20 each. These Warrants would be exercisable into equal number of equity shares of face value of Rs10 each of the company.

''The new fund raise measure is in continuation to the company's earlier announcements dated February 14, 2018, and February 17, 2018, and pursuant to SEBI regulations," the company said in a statement.

The allotment of these warrants will be subject to necessary approvals. The company has convened an Extra-Ordinary General Meeting on 19 March 2018, to get shareholders' approval.

Certain media reports stated that the company is raising the stake from Bay Capital, which is the company's single-largest non-promoter shareholder. Bay Capital was founded by Siddharth Mehta and Puneet Saraogi and runs a private equity and long-only public markets investment practice.

On 17 February diversified financial services firm Religare Enterprises said it had plans to raise Rs1,200 crore through mix of equity and debt. The announcement came close on the heels of the resignation of promoters Malvinder Mohan Singh and Shivinder Mohan Singh.

Malvinder Mohan Singh had stepped down as CEO of the firm in November.

The company also said it inducted three new board members. They were Vikram Talwar, a banker and entrepreneur; P Vijaya Bhaskar, a retired executive director of the Reserve Bank of India; and Siddharth Mehta, the founder of Bay Capital Partners.