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Report: Religare Finvest to issue new shares to raise 6.5B rupees

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Report: Religare Finvest to issue new shares to raise 6.5B rupees

ReligareFinvest Ltd. plans to raise 6.5 billion Indian rupees by way of ashare sale as it aims to boost its capital adequacy ratio to reach regulatoryrequirements, Mint reported Sept. 30,citing "two people close to the development."

The company's capital adequacy ratio is below 10%. UnderReserve Bank of India requirements, large, deposit-taking nonbanking financialcompanies should have capital adequacy ratios of 15%.

The company may bring in a new investor if it is unable toreach the 15% requirement by March 2017, said one of the sources.

Religare Finvest had written off its exposure to ABGShipyard Ltd., estimated at 1.8 billion rupees. One source said this write-offwould lead to a decline in the company's net worth, which pushed it to raisecapital.

As of Sept. 29, US$1was equivalent to 66.76 Indian rupees.