Religare Enterprises Limited (REL) has made a significant move in the capital markets by allotting 6,38,29,782 convertible warrants at INR 235 per warrant, aiming to raise up to INR 1,499.99 crore through a preferential allotment. This strategic financial decision, approved by the company's Board of Directors on September 12, 2025, marks a substantial influx of capital for the firm.

Warrant Allotment Details

The warrants were issued to a diverse group of 11 investors, including both promoter and non-promoter entities:

Terms of the Warrant Issue

Each warrant is convertible into one equity share of face value INR 10 within 18 months from the allotment date. The company has received INR 375 crore, representing 25% of the total consideration, with the remaining 75% payable upon conversion.

Regulatory Compliance and Approvals

The allotment follows shareholder approval obtained at an Extraordinary General Meeting held on August 08, 2025, and in-principle approvals from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) dated September 02, 2025. This move aligns with the regulations set by the Securities and Exchange Board of India (SEBI) for such preferential allotments.

Impact on Share Capital

As per the LODR filing, the warrants do not carry dividend or voting rights until conversion. Upon full conversion, these warrants have the potential to significantly impact REL's share capital structure. However, the company's current paid-up equity share capital remains unchanged at this stage.

Strategic Implications

This substantial capital raise through preferential allotment indicates Religare Enterprises' intent to strengthen its financial position. The participation of both promoter and non-promoter entities in this allotment suggests a balanced approach to fundraising and potentially signals confidence in the company's future prospects.

Investors and market watchers will be keenly observing how Religare Enterprises utilizes these funds and the potential impact on its business operations and market position in the coming months.

Religare Enterprises Limited (REL) has achieved a significant milestone in its capital raising efforts. The company has received in-principle approval from both the National Stock Exchange of India (NSE) and BSE Limited (formerly known as Bombay Stock Exchange) for issuing preferential warrants worth ₹1,500 crore.

Approval Details

According to the company's regulatory filing, Religare Enterprises has been granted permission to issue 6,38,29,782 warrants convertible into an equivalent number of equity shares. The warrants are priced at ₹235.00 per warrant, bringing the total issue size to approximately ₹1,500 crore.

Significance of the Approval

This approval marks a crucial step for Religare Enterprises, allowing the company to proceed with its capital raising plans. The in-principle nod from both major stock exchanges paves the way for the company to strengthen its financial position and pursue growth opportunities.

Key Points of the Warrant Issue

Regulatory Compliance

The approval comes with several conditions that Religare Enterprises must adhere to:

1. The company must file the listing application at the earliest from the date of allotment.
2. All statutory and other approvals must be obtained, and guidelines issued by regulatory authorities such as SEBI, RBI, and MCA must be complied with.
3. The company needs to comply with all applicable guidelines, regulations, and directions of the stock exchanges and statutory authorities.
4. Adherence to the conditions set forth in the SEBI (LODR) Regulations, 2015, Companies Act, 2013, and other applicable laws is mandatory.

Timeline and Next Steps

The in-principle approval follows the shareholders' approval obtained during an Extraordinary General Meeting. Religare Enterprises is now poised to move forward with the warrant issuance process, subject to fulfilling all regulatory requirements and conditions stipulated by the stock exchanges.

Implications for Investors

This development is significant for both existing and potential investors in Religare Enterprises. The successful completion of this preferential issue could potentially lead to an influx of funds, which may be utilized for various corporate purposes, including business expansion, debt reduction, or strengthening the company's balance sheet.

As the company progresses with this capital raising initiative, market participants will likely keep a close watch on how Religare Enterprises deploys the funds and the subsequent impact on its financial performance and market position.