New Delhi: Indian financial services firm Religare Enterprises on Tuesday said its founders will spend Rs8.57 billion to raise their stake by about 9% via shares and preferential allotment and make an open offer to acquire a further 20% in the company.
Malvinder Mohan Singh and Shivinder Mohan Singh, the founder brothers, have proposed to increase their stake in the company from the existing 57.10% to 65.79 % on fully-diluted basis through purchases from existing investors and preferential allotment, the company said in a statement.
The founders plan to spend Rs2.5 billion on preferential allotment of shares worth 4.014% and an equal amount on warrants convertible into equity shares. They also plan to spend Rs3.57 billion on open market purchase of another 5.58% stake, according to the statement.
“It will bolster our plans of making Religare a leading global financial services player from the emerging markets,” chairman Sunil Godhwani said.
A successful open offer will reduce public float in Religare much below 25 %, the limit the Indian government recently made mandatory for listed firms.
However, Religare said in an email response that in the event the promoters have window of 6 months to bring the shareholding within regulatory norms.
Religare, which the market values at Rs59 billion, closed 8.42% up at Rs500.80 on Tuesday, in a weak Mumbai market.