NEW DELHI : Financial services actor Religare Enterprises Ltd (REL) said on Monday its shareholders approved a proposed increase ₹570 crore through the preferential issuance of shares to a group of investors, including existing shareholders, to fund its business plans.
The company would issue 5.41 crore of shares at a price of ₹105.25 per unit to existing shareholders like the Burman family (Dabur group), Ares SSG Capital and some high profile new investors, Religare Enterprises said in a statement.
The proposal was approved by shareholders at the company’s extraordinary general meeting (EGM) held on Saturday July 3.
Part of the fund would be used for the debt restructuring project of its subsidiary Religare Finvest Ltd, which has been the subject of the Reserve Bank of India (RBI) corrective action plan since January 2018 due to its poor health financial.
The company is in financial difficulty due to alleged embezzlement by former promoters Shivinder Singh and his brother Malvinder Singh. Several investigative agencies are investigating the case of a financial mess of around ₹4000 crores.
Commenting on the EGM decision, REL President Rashmi Saluja, “We are on the right path to recovery and will use these funds for the growth of our businesses. Even today, I thank our shareholders and investors, who demonstrated their confidence in the Company by passing the special resolution by an overwhelming majority. “
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