Indian financial services company Religare is looking to raise INR3bn ($37.64m) via rights issue to support its health insurance business, Mint reported, citing executive chairperson Rashmi Saluja.

“REL is committed to fully subscribe to its share as a promoter and as a principal shareholder. Equity of INR5.67bn had already been raised from Kedara Capital in 2020, which included primary infusion in Care Health Business, which has been growing at the rate of 40% per annum,” Saluja was quoted by the publication as saying.

In July 2021, the company raised INR5.7bn through an issue of preferential issue of shares. The proceeds were used to drive growth in various verticals including broking and housing.

Saluja said that funds have also been set aside for one-time settlement with bankers for its non-banking financial company (NBFC) unit and the process for one-time settlement has already begun.

Malvinder and Shivinder Singh founded Religare, which is now being led by new management and an independent board.

Since the changes at the management level, the firm has been trying to accelerate the development of its financial services division.

Saluja noted that despite the economic downturn caused by Covid-19, Religare paid INR85bn of its NBFC subsidiary Religare Finvest and became debt-free. “We are building a war chest to finance the growth of all subsidiaries, including health insurance. and will raise more funds before the year-end,” she added.