Religare enterprises ' material subsidiary Care Health Insurance Limited (CHIL) has received income tax demand orders totaling Rs 140.20 crores from tax authorities for assessment years 2023-24 and 2024-25. The orders, dated March 17, 2026, were issued by the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) Mumbai under Sections 147 and 143(3) of the Income-tax Act, 1961.

Tax Demand Details

CHIL disputes the tax computation by the authority and considers the demand and applicable interest to be incorrectly calculated. The company is preparing to file a rectification application before the authority and expects the rectified tax demand, including interest, to be approximately Rs 96 crores after the rectification order is passed.

Primary Adjustments and Disallowances

The assessing officer made several additions to CHIL's total taxable income through various adjustments:

• Claims Provisions: Disallowance of provision of Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not Enough Reported (IBNER)
• Outstanding Claims: Disallowance of provision of unsettled claims outstanding
• TDS Compliance: Disallowance under Section 40(a)(ia) for non-deduction of TDS on certain expenses
• Business Expenses: Disallowance of marketing and advertisement expenses as inadmissible under Section 37(1)

According to CHIL, issues related to IBNR and IBNER provisions have been previously adjudicated in the company's favor by various judicial forums, including Delhi High Court, Income Tax Appellate Tribunal Delhi, and Commissioner of Income Tax (Appeals). These disallowances primarily relate to industry-wide issues affecting insurance companies.

Company's Response Strategy

CHIL has outlined a two-pronged approach to address the tax demand:

1. Rectification Application: Filing an application before the authority seeking rectification of the incorrectly computed tax demand and applicable interest
2. Appeal Process: Filing an appeal against the assessment orders before an appropriate forum within prescribed timelines, based on advice from tax consultants

The income tax demand, if required to be paid, would be payable by CHIL. However, the company's financials are consolidated with Religare Enterprises Limited, meaning any financial impact would reflect in the parent company's consolidated accounts. The regulatory disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as CHIL is a material subsidiary of the listed entity.

Religare Enterprises Limited's promoter group has strengthened their position in the company through strategic share acquisitions, increasing their collective shareholding to 30.84% from the previous 29.57%. The acquisition, disclosed under SEBI's substantial acquisition regulations, involved multiple promoter entities and represents a significant vote of confidence in the financial services company.

Acquisition Details

The promoter group acquired a total of 70.24 lakh shares through two distinct methods. The acquisition comprised warrant conversions and open market purchases, demonstrating a comprehensive approach to increasing their stake in the company.

Warrant Conversion Activity

On December 5, 2025, the promoter entities converted 19.86 lakh warrants issued at ₹235 per warrant into an equal number of equity shares with a face value of ₹10 each. The conversion was distributed among the promoter entities as follows:

Open Market Acquisitions

Between March 9, 2026, and March 17, 2026, the promoter group purchased 50.38 lakh equity shares from the open market. The majority of these purchases were made by Puran Associates Pvt. Ltd. and Mrs. Shivani Burman.

Updated Shareholding Pattern

Following these acquisitions, the individual shareholdings of the promoter entities have been restructured. Puran Associates Private Limited emerged as the largest individual promoter entity with 10.66% shareholding, followed by VIC Enterprises Private Limited at 7.74%.

The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, with all entities being part of the promoter and promoter group category. The company's total diluted share capital stands at 39.68 crore shares, considering the full conversion of outstanding warrants and ESOPs.