Shares of Religare Enterprises Ltd rallied 5% on 4 September after the company announced that they have received approval from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) had approved the preferential issuance of warrants.

The corporation can issue 6,38,29,782 warrants that can be converted into equity shares at a price of Rs 235 each. The overall issuance size of the warrant is up to Rs 1,500 crore.

“The Exchange hereby grants its ‘in-principle’ approval for the aforesaid issue. This ‘in-principle’ approval should not be construed as our approval for listing of aforesaid security, and you are required to duly and separately comply with the requirements in respect thereof,” BSE filing read. 

Similarly, “We are in receipt of your application regarding In-principle approval for issue of 63829782 Equity shares of Rs 10 each to be allotted pursuant to conversion of warrants to be issued on Preferential Basis in terms of Regulation 28(1) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. In this regard, the Exchange is pleased to grant in-principle approval for the said issue,” the NSE filing read. 

Earlier, in July, Religare Enterprises secured a Rs 1,500 crore growth capital commitment from a group of marquee investors, led by the Burman family of Dabur, the company’s promoters. The capital was to be raised through a preferential issue of convertible warrants at Rs 235 per share.

The Burman family, owners of Dabur and promoters of Religare, will contribute Rs 750 crore, half of the total injection, underlining their ongoing commitment to the financial services firm.

High-profile investors, such as the Hindustan Times Media Group, Ashish Dhawan, and JM Financial, will contribute the remaining Rs 750 crore.

At 3:30 pm, the shares of Religare Enterprises closed 3.24% higher at Rs 261.45 on NSE.

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