Religare Enterprises Limited (REL) has announced a significant update to its recent preferential allotment of warrants, revising the lock-in period to align with the Securities and Exchange Board of India (SEBI) regulations. This revision comes in response to discussions with stock exchanges during the review of the company's application for in-principle approval of the preferential issue.

Key Details of the Preferential Issue

• REL is issuing up to 6,38,29,782 warrants, each convertible into one fully paid-up equity share with a face value of Rs. 10.00.
• The preferential issue was approved by the Board of Directors on July 11, 2025, and subsequently by shareholders at an Extraordinary General Meeting (EGM) on August 08, 2025.

Revised Lock-in Period

The company has updated Point 18 of the Explanatory Statement to the EGM Notice, which now states:

"The Warrants allotted pursuant to the Preferential Allotment, and the resultant equity shares to be issued and allotted upon exercise of the right attached to the Warrants shall be subject to a lock-in for such period as per the provisions of Chapter V of the SEBI ICDR Regulations."

This revision ensures compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, providing clarity on the lock-in period for both the warrants and the resultant equity shares.

Regulatory Compliance

The announcement, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates Religare Enterprises' commitment to regulatory compliance and transparency. The company has made this information available on its website and has requested stock exchanges to disseminate the same.

Impact on Investors

This revision in the lock-in period aligns the preferential issue more closely with regulatory standards, potentially offering greater clarity and confidence to investors. It ensures that the company's capital raising efforts through this preferential allotment adhere to the latest SEBI guidelines.

Investors and market participants are advised to take note of this update, as it affects the terms of the warrants and subsequent equity shares to be issued by Religare Enterprises Limited.

The company's proactive approach in addressing regulatory discussions and promptly revising its terms showcases its commitment to good corporate governance practices.

Religare Enterprises Limited , a prominent financial services group, has announced a significant development regarding its step-down subsidiary, Religare Housing Development Finance Corporation Limited (RHDFCL). The company has withdrawn the credit rating for its proposed ₹100 crore non-convertible debentures (NCDs), marking a shift in its financial strategy.

Credit Rating Withdrawal

According to a disclosure made by Religare Enterprises under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements, RHDFCL requested Infomerics Valuation and Rating Ltd. (Infomerics) to withdraw the credit rating assigned to its proposed NCDs. Infomerics complied with this request, as confirmed in their press release dated August 19, 2025.

Previous Rating and Instrument Details

Prior to the withdrawal, the proposed NCDs had been assigned a rating of 'IVR BBB-/Stable' (IVR Triple B minus with Stable outlook) by Infomerics. This rating indicated a moderate degree of safety regarding timely servicing of financial obligations and carried a moderate credit risk.

Reasons for Withdrawal

The primary reason for the rating withdrawal appears to be that no debentures were issued under the proposal. This was confirmed by RHDFCL's statutory auditor, who stated that the company had not issued any NCDs on or after September 30, 2024, using the rating assigned by Infomerics.

Impact on Financial Strategy

The decision to withdraw the credit rating for the proposed NCDs suggests a potential shift in RHDFCL's funding strategy. It may indicate that the company is exploring alternative financing options or reassessing its capital requirements in the current market conditions.

Company Background

Religare Housing Development Finance Corporation Limited is a housing finance company operating as a non-deposit-taking entity with SARFAESI license. It was incorporated on June 30, 1993, and was acquired by the Religare group in May 2009.

Market Implications

While the withdrawal of the credit rating does not directly impact Religare Enterprises' current financial position, it may influence investor perceptions about the company's subsidiary and its future fundraising plans. Investors and market analysts will likely be watching closely for any further developments or alternative funding announcements from RHDFCL.

This move by Religare's subsidiary underscores the dynamic nature of financial planning in the corporate world, where companies must continually adapt their strategies to align with market conditions and organizational needs.