Religare Enterprises allots 5617977 Equity Shares and 5617977 Warrants on Preferential Basis

Religare Enterprises Ltd has announced that the Offer Committee of the Board of Directors of the Company on September 23, 2010, has approved allotment of securities to RHC Finance Pvt Ltd, (a wholly owned subsidiary of RHC Holding Pvt Ltd, one of the Promoter Group Companies).

The Board approved allotment of 5,617,977 fully paid-up equity shares of Rs. 10/- each ("Equity Shares") of the Company for cash at a price of Rs. 445/- per Equity Share including a premium of Rs. 435/- per Equity Share.

The Board also approved allotment of 5,617,977 warrants ("Warrants") with entitlement to subscribe to equivalent number of fully paid up Equity Shares of Rs. 10/- each of the Company for cash at a price of Rs. 445/- per Equity Share including a premium of Rs. 435/- per Equity Share.

Pursuant to the aforesaid allotment of Securities, the Company has received consideration of approximately Rs. 250 Crores towards allotment of the Equity Shares and approximately Rs. 62.50 Crores towards allotment of the Warrants (being 25% of the total consideration payable on warrants on the date of allotment as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009).

The aforesaid allotment of Securities is in accordance with all applicable provisions including but not limited to the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 on preferential issue. The aforesaid allotment of Securities was approved by the Members of the Company at the Extra-ordinary General Meeting held on September 20, 2010.

The stock was trading at Rs.460.90, up by Rs.0.45 or 0.10%. The stock hit an intraday high of Rs.468.40 and low of Rs.459.10.

The total traded quantity was 2549 compared to 2 week average of 14864.

Source : Equity Bulls

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