Religare Enterprises Issues Convertible Warrants To 11 Investors To Raise Rs 1,500 Crore
Since the warrants are yet to be converted, there is no immediate change in the company’s paid-up equity base.
Religare Enterprises Ltd. approved on Friday the issuance of over 6 crore warrants on a private placement basis, aggregating to Rs 1,500 crore, as per an exchange filing,
The company will issue 6.38 crore warrants, each priced at Rs 235, each convertible at the option of the holder within a period of 18 months from date of allotment, in one or more tranches. Each warrant can be converted into one equity share of the same price.
According to the company's filing, the warrants were allotted to 11 investors, including both promoters and external entities. Among promoters, MB Finmart Pvt Ltd received 95.7 lakh warrants, Puran Associates Pvt Ltd and Milky Investment & Trading Co. were allotted about 79.8 lakh each, while VIC Enterprises Pvt. Ltd. got 63.8 lakh.
On the non-promoter side, JM Financial Credit Solutions received the largest chunk at 93.6 lakh warrants, followed by Niralee Properties LLP with 85.1 lakh.
Individual investors included Vipul Jayantilal Modi and Leena Vipul Modi (31.9 lakh each), Ashish Dhawan (53.2 lakh) and Akhil Dhawan (8.5 lakh). The Hindustan Times Ltd was also allotted 14.9 lakh warrants.
The total issue size aggregates to Rs 1,499.99 crore, of which Rs 375 crore, representing 25% of the consideration, has already been received from allottees. The balance 75% will be payable upon conversion.
The allotment, cleared by shareholders at an EGM in August and backed by in-principle approvals from NSE and BSE earlier this month, complies with SEBI’s ICDR norms. The warrants are subject to lock-in and do not carry voting or dividend rights until conversion.
Since the warrants are yet to be converted, there is no immediate change in the company’s paid-up equity base. Once exercised, the equity shares will be fully paid-up and listed on both NSE and BSE, as per the filing.
