Religare Enterprises Limited (REL) has disclosed the completion of a rights issue by its wholly-owned subsidiary, Religare Broking Limited (RBL). RBL successfully allotted 4,21,05,264 equity shares at a premium, raising INR 100,00,00,020. These funds will support RBL’s general business operations, including scaling up margin trade financing and working capital requirements.
Religare Broking Completes Capital Infusion
Religare Enterprises Limited (REL) has announced the successful completion of a rights issue undertaken by its wholly-owned subsidiary, Religare Broking Limited (RBL). The Board of Directors of REL had previously approved this rights issue, aiming to bolster RBL’s financial standing and operational capacity. The announcement confirms the allotment of 4,21,05,264 equity shares of RBL. Each share, with a face value of INR 10, was issued at a premium of INR 13.75, bringing the total amount raised to INR 100,00,00,020 (Rupees One Hundred Crores and Twenty Only). This transaction was finalized on August 21, 2026.
Strategic Use of Funds
The proceeds from this rights issue are earmarked for the general business operations of Religare Broking Limited. Key areas of fund utilization include the scaling up of its margin trade financing (MTF) book and strengthening its overall working capital position. RBL is primarily engaged in the stock broking and depository services sector, serving approximately 2.4 Lakh active customers. The company reported a turnover of INR 315.03 Crores for FY 2025-26.
Related Party Transaction at Arm’s Length
The investment made by REL in RBL’s rights issue is characterized as a related party transaction, given RBL’s status as a wholly-owned subsidiary. However, the announcement specifies that the shares were offered at a uniform price to all shareholders, ensuring the transaction was conducted at arm’s length. The promoter of REL has no direct interest in RBL.
Source: BSE
