Religare fixes rights issue price at Rs355 per share

Religare fixes rights issue price at Rs355 per share

Mumbai: Domestic brokerage firm Religare Enterprises today said it has fixed the rights issue price at Rs355 a share to raise about Rs1,802 crore.

The board of directors have approved a rights issue of shares in 2:3 ratio, wherein two equity share would be issued for every three shares held, Religare said in a filing to the Bombay Stock Exchange (BSE).

The promoters have given their commitment to subscribe for the unsubscribed portion, if any, of the said issue, the filing added.

Earlier this week, wind power major Suzlon Energy had suspended its rights issue and Tata Motors issue also could not enthuse investors.

The company would utilise the rights issue proceeds for general corporate purposes.

Religare proposes to file draft letter of offer for the said issue around December. The networth of REL is expected to go up to about Rs2,400 crore following the rights issue.

Besides, the company said it would increase the borrowing limit to Rs3,000 crore from the existing Rs500 crore.

The company would also increase its authorised share capital to Rs250 crore from the existing Rs160 crore.

In November last year the financial services arm of Ranbaxy Group listed it self on the bourses. As on 24 October, REL’s market capitalisation stood at Rs2416 crore.

Religare is a holding company of 11 subsidiaries engaged in offering financial services targeted at retail, high net worth individuals besides corporate and institutional clients.

Shares of REL closed at Rs328, up 0.25% on the BSE yesterday.