Religare Gets NSE, BSE Nod To Raise Rs 1,500 Crore By Issuing Warrants

Religare Enterprises Ltd has received approvals from the National Stock Exchange and the BSE to raise Rs 1,500 crore through the issue of warrants on a preferential basis.

The firm will issue 6.38 crore warrants, convertible into equivalent number of equity shares at Rs 235 apiece. The warrants have a face value of Rs 10 each on a preferential basis, according to an exchange filing on Wednesday.

The move to issue warrants was approved by shareholders in an extraordinary general meeting on Aug. 8, it added.

The exchanges advised the company to strengthen internal controls before the allotment of securities in order to avoid non-compliance with respect to the trades being executed.

It was also advised to get an undertaking from the allottees confirming that they will not engage in intra-day trading in the scrip of the company or any sale in the scrip of the company till the allotment date of the security as under regulations.

Shares of Religare Enterprises closed 4.33% higher at Rs 253.25 apiece on the National Stock Exchange before the announcement, compared to a 0.55% rise in the benchmark Nifty. The stock has fallen 5.54% in the last 12 months and 7.52% on a year-to-date basis.