Religare Enterprises to raise $142 mn from Bay Capital, others

Religare Enterprise Ltd said on Monday its board has approved a plan to raise Rs 916.42 crore ($142 million) by issuing preferential warrants to investors including Bay Capital Investments Ltd.

The financial services company will issue up to 17.56 crore warrants at Rs 52.20 apiece, it said in a stock-exchange filing. These warrants can be converted into an equal number of equity shares within 18 months, it added.

The announcement comes after the company said last week it would raise as much as Rs 1,200 crore via equity and debt to bolster its capital and invest in subsidiaries.

On Monday, Religare said the allotment of these warrants will be subject to approvals from the company’s shareholders. The company will issue the warrants to 41 investors, including private investment firm Bay Capital. However, it didn’t give a break-up of the amount it will raise from each investor.

Bay Capital is the single-largest non-promoter shareholder in Religare. Last month, VCCircle reported that the investment firm had increased its stake in the financial services firm controlled by brothers Malvinder and Shivinder Singh to nearly 10%.

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