Religare Enterprises Limited (REL) has successfully raised up to ₹1,499.99 crore through a preferential allotment of 6.38 crore convertible warrants at ₹235 per warrant. The allotment was made to 11 investors, comprising both promoter and non-promoter entities.
Warrant Conversion Details
Each warrant is convertible into one equity share within 18 months from the allotment date. REL has already received ₹375 crore, representing 25% of the total consideration, with the remaining 75% payable upon conversion. Until conversion, the warrants carry no dividend or voting rights.
Investors Participating
The allotment included participation from both promoter and non-promoter entities:
- Promoters: M.B. Finmart Pvt. Ltd., Puran Associates Pvt. Ltd., Milky Investment and Trading Co., VIC Enterprises Pvt. Ltd.
- Non-Promoters: JM Financial Credit Solutions Ltd., Niralee Properties LLP, Vipul Jayantilal Modi, Leena Vipul Modi, Ashish Dhawan, Akhil Dhawan, The Hindustan Times Ltd.
The transaction reflects strong investor confidence, with substantial backing from both internal and external stakeholders.
Regulatory and Shareholder Approvals
The allotment follows shareholder approval obtained at an Extraordinary General Meeting on August 8, 2025, and in-principle approvals from NSE and BSE on September 2, 2025. The move complies with SEBI regulations governing preferential allotments.
Strategic Implications
The capital raise strengthens REL’s financial position, providing liquidity for strategic initiatives and potential business expansion. The participation of diverse investors also signals confidence in the company’s long-term growth prospects. Upon full conversion of the warrants, REL’s share capital structure may undergo a significant change, further enhancing its equity base.
Summary
- Warrants Allotted: 6.38 crore
- Issue Price: ₹235 per warrant
- Funds Raised: Up to ₹1,499.99 crore (₹375 crore received so far)
- Conversion Period: 18 months from allotment
- Investors: 11, including promoter and non-promoter entities
- Purpose: Strengthening financial position and strategic flexibility
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.