Religare Enterprises share price fell 5 percent in early trade on June 9 after the company approved fundraising via preferential share allotment of up to Rs 570 crore.
The company will raise funds from existing shareholders and select new marquee investors by allowing preferential shares at a price of Rs 105.25 per share.
The funds raised would be primary utilised as growth capital for investment in its subsidiaries businesses, the company said. Axis Capital is acting as a sole advisor to the above transaction.
"We would invest these funds towards the growth of all our underlying businesses including Religare Finvest (RFL) which is undergoing the process of debt restructuring and I am positive about the future of that company," said Dr Rashmi Saluja, Executive Chairperson at Religare Enterprises.
The board of directors will obtain the approval of members of the company in the extraordinary general meeting which is scheduled to be held on July 03, 2021
At 09:33 hrs, Religare Enterprises was quoting at Rs 141.60, down Rs 4.90, or 3.34 percent on the BSE.
The share touched a 52-week high of Rs 156 and a 52-week low of Rs 32.40 on 07 June, 2021 and 09 June, 2020, respectively.
Currently, it is trading 9.23 percent below its 52-week high and 337.04 percent above its 52-week low.