Religare puts INR 119.7 crore into Care Health Insurance rights issue
What's the deal? Religare EnterprisesDealroom has a profile for this one. Try Dealroom → Limited (REL) has subscribed to 7,480,324 equity shares in the rights issue of its subsidiary, Care Health InsuranceDealroom has a profile for this one. Try Dealroom → Limited (CHIL). The shares were issued at a face value of INR 10 each plus a premium of INR 150, taking the total to INR 1,19,68,51,840. The allotment was completed on June 30, 2026, and the acquisition finalised on July 8, 2026.
Why now? The proceeds are earmarked to fund CHIL's expansion plans and meet its statutory solvency requirements. Religare, registered with the Reserve Bank of India as a Core Investment Company, said the move fits its core business of investing in and lending to group companies.
What's the endgame? CHIL, incorporated on April 2, 2007, operates in health insurance. As of March 31, 2026, it ran 277 branches, employed over 13,000 people, and served more than three million policyholders.
Its turnover has climbed steadily: INR 7,022 crore in FY2023-24, INR 8,562 crore in FY2024-25, and INR 10,416 crore in FY2025-26.
What could go wrong? As a material unlisted subsidiary, CHIL's rights issue makes the investment a related party transaction. Religare said it was conducted at arm's length, as the price was uniform for all shareholders.
The signal: The capital injection underscores Religare's commitment to scaling its insurance arm as CHIL crosses the INR 10,000 crore turnover mark. Religare shares closed at INR 266.10 on the day, down 2.26%.
Read more: Investoomarket
Image credit: MattHurst
