Religare Enterprises climbs 5% on approval of Rs 500 crore investment in arm

NEW DELHI: Shares of Religare Enterprises jumped 5 per cent on Tuesday after the company's shareholders approved a proposal to invest up to 500 crore in arm Religare Capital Markets in a bid to repay debt related to Mauritius business, and working capital requirements of the domestic business.

Following the report, the stock rose 4.95 per cent to end at Rs 44.50 on BSE.

The shareholders have given their approval to an ordinary resolution through postal ballot, the company told stock exchanges.

As per the voting result, 55.63 per cent shareholders voted in favour of the proposal, while the remaining 44.36 per cent were against it. The voting result also showed that 99.95 per cent of total votes casted by public institutional shareholders were against the resolution. Promoters did not participate in voting. However, 99.03 per cent of the public non-institution shareholders who participated in the voting were in favour of the proposal.

The voting was closed on September 9. In the postal ballot notice issued in July, Religare Enterprises had said that it proposes to make further capital investment of up to 500 crore in Religare Capital Markets (RCML), PTI reported.