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 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.”
Source: Mint