REReligare Enterprises532915NCD issuance

Material subsidiary Care Health Insurance allots Rs. 150 crore subordinated debentures at 10.50%

Care Health Insurance Ltd (CHIL), a material subsidiary of Religare Enterprises, has allotted 15,000 unsecured, subordinated, listed, rated, redeemable non-convertible debentures.

By ScoutQuest · Fri 30 Oct 2026, 8:54 PM IST · 2 min read

Issue Size

Rs. 150 Crore (15,000 debentures of Rs. 1,00,000 each)

Coupon Rate

10.50% p.a., paid annually

Tenor / Maturity

10 years, maturing October 30, 2036; call option at end of 5 years and every year thereafter

What CHIL has raised

Care Health Insurance Limited (CHIL), described as a material subsidiary of Religare Enterprises Limited, has allotted 15,000 debentures, each with a face value of Rs. 1,00,000, taking the total issue size to Rs. 150 Crore. The allotment was for cash, at par, in dematerialised form, on a private placement basis.

Instrument details

• The debentures are unsecured, subordinated, listed, taxable, rated, redeemable and non-convertible, in the nature of 'Subordinated Debt' under IRDAI laws and SEBI NCS Regulations.
• Coupon is fixed at 10.50% per annum on the outstanding principal, with interest charged to the profit and loss account of CHIL and paid annually.
• Tenor is 10 years from the deemed date of allotment of October 30, 2026, with maturity on October 30, 2036.
• CHIL can exercise a call option at the end of 5 years and every year thereafter.
• The debentures are proposed to be listed on the National Stock Exchange of India Limited.
• No charge or security has been created over assets for these instruments.

Conditions on interest payment

Because the issuer is an insurer, interest servicing is tied to IRDAI requirements. Interest may not be paid for a financial year if IRDAI rules prohibit it. Prior IRDAI approval is needed if CHIL's solvency margin is below the control level, if paying interest would push or keep solvency below regulatory requirements, or if paying or accruing interest results in a net loss or increases a net loss.

Any unpaid interest is to be cumulated and paid on a later interest payment date or at redemption, compounded annually. The update states that such non-payment, or non-payment of penal interest, is not to be treated as an event of default or a breach of the transaction documents. In that situation, CHIL would not distribute dividend to its equity shareholders (for the relevant financial year in the case of penal interest).

Reading it as a shareholder

The transaction is a debt-raising by the subsidiary, not by Religare Enterprises itself, and it adds long-tenor capital of Rs. 150 Crore to CHIL's books. Subordinated debt of this kind typically counts towards an insurer's regulatory capital, and the terms are structured around IRDAI solvency rules. For the parent, the relevant points are the cost of the borrowing at 10.50% and the conditions that can defer interest payments, which the update flags as linked to solvency and profitability thresholds at CHIL. The instruments are unsecured and rank as subordinated debt.

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