Religare Enterprises Ltd, a diversified financial services group, said it would raise funds worth Rs 570 crore ($78.1 million) through a share issue.
The company said it would issue up to 5.41 crores shares at a price of Rs 105.25 per share.
Delhi-based Religare Enterprises Ltd said the share price includes a premium of Rs 95.251 per equity share over the face value of Rs 101 per equity share.
Existing shareholders Burman family and Ares SSG Capital and selected other marquee investors will pool in cash.
“We would invest these funds towards the growth of all our underlying businesses including Religare Finvest Ltd which is undergoing the process of debt restructuring and I am positive about the future of that company. Our health insurance and other businesses are also looking up,” Rashmi Saluja, executive chairperson of Religare Enterprises, said.
Religare Enterprises said it would use the funds as growth capital for investment in subsidiaries.
Religare Enterprises is the holding company for four key businesses, that is SME Finance through its Religare Finvest Ltd, health insurance through its Care Health Insurance Ltd, Retail Braking through Religare Braking Ltd and Affordable Housing through Religare Housing Development Finance Corporation Ltd.
It offers an integrated suite of financial services through its underlying units and operating entities, including loans to SMEs, affordable housing finance, health insurance and retail banking. The company has access to a wide base of customers and has an overall employee base of more than 11,000 professionals.
In September last year, the company was in talks to sell its lending unit Religare Finvest Ltd to Indiabulls Ventures Ltd, which gets a large part of its business from stockbroking and the rest from lending, construction and asset management, VCCircle reported.
Shares of the company were trading at 136.50 apiece on the BSE, 6.95% lower from Wednesday.
Axis Capital is acting as a sole advisor on the fundraise.