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NEW DELHI :  

Religare Enterprises Ltd is set to raise 300 crore through a rights issue to grow its health insurance business, said Rashmi Saluja, executive chairperson.

“REL is committed to fully subscribe to its share as a promoter and as a principal shareholder. Equity of 567 crore had already been raised from Kedara Capital in 2020, which included primary infusion in Care Health Business, which has been growing at the rate of 40% per annum," Saluja said in an interview.

It had also raised 570 crore via a preferential issue in July 2021 from long-term marquee investors. The firm invested the money in various verticals to grow its broking business as well as housing. “Funds have also been set aside for one-time settlement with the bankers for its NBFC unit. The process for one-time settlement with lenders has already been initiated," Saluja said.

Founded by brothers Malvinder and Shivinder Singh, who are facing fraud charges, Religare is led by a new management and a professionally-managed independent board. Since the takeover, the firm has been working to put legacy issues behind and chart a turnaround through a multi-pronged strategy for its financial services division. “We paid 8,500 crore to banks despite covid." REL has become debt-free after repaying debts of Religare Finvest Ltd, she said. “We are building a war chest to finance growth of all subsidiaries, including health insurance. and will raise more funds before the year-end."

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