Religare Enterprises Limited (REL) announced that its subsidiary, Care Health Insurance Ltd. (CHIL), has successfully completed its rights issue. CHIL allotted 74,80,324 equity shares at a premium of INR 150 per share, totaling INR 1,19,68,51,840. This allotment was made on June 30, 2026, as per the approval of REL’s Board of Directors on June 19, 2026. The funds raised will support CHIL’s expansion plans and statutory solvency requirements.
Care Health Insurance Rights Issue Allotment
Religare Enterprises Limited (REL) has disclosed the completion of a significant rights issue by its material unlisted subsidiary, Care Health Insurance Limited (CHIL). The transaction, confirmed on June 30, 2026, involved the allotment of 74,80,324 equity shares of CHIL to REL. Each share was issued at a face value of INR 10, with an additional premium of INR 150, bringing the total transaction value to INR 1,19,68,51,840.
Strategic Financial Move
This equity share allotment follows the approval granted by the Board of Directors of Religare Enterprises Limited during their meeting held on June 19, 2026. The investment made by REL in its subsidiary’s rights issue is classified as a related party transaction, conducted at arm’s length, as the subscription price was uniform for all shareholders. The promoter of REL has no direct interest in CHIL.
Purpose of Funds
The proceeds generated from this rights issue are earmarked for CHIL to finance its strategic expansion plans. Additionally, the funds will be utilized to meet the company’s statutory solvency requirements, ensuring robust financial health and compliance within the insurance sector.
Care Health Insurance Overview
Care Health Insurance Limited, registered with IRDAI, is a prominent player in the health insurance market. As of March 31, 2026, CHIL operated through 277 branches and employed over 13,000 professionals, serving more than three million policyholders. The company’s financial performance indicates strong growth, with turnovers of INR 7,022 crores for FY 2023-24, INR 8,562 crores for FY 2024-25, and a projected INR 10,416 crores for FY 2025-26.
Source: BSE
