Religare Enterprises Ltd is ready to lift ₹300 crore through a rights issue to grow its medical health insurance business, said Rashmi Saluja, executive chairperson.
“REL is committed to totally 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 speed of 40% each year,” 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 cash in various verticals to grow its broking business in addition to housing. “Funds have also been put aside for one-time settlement with the bankers for its NBFC unit. The method for one-time settlement with lenders has already been initiated,” Saluja said.
Founded by brothers Malvinder and Shivinder Singh, who’re facing fraud charges, Religare is led by a latest management and a professionally-managed independent board. Because the takeover, the firm has been working to place 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 change into debt-free after repaying debts of Religare Finvest Ltd, she said. “We’re constructing a war chest to finance growth of all subsidiaries, including medical health insurance. and can raise more funds before the year-end.”
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