Religare to lift ₹300 cr for medical health insurance biz

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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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