Religare Enterprises Limited's material subsidiary, Care Health Insurance Limited, has successfully overturned a GST order that had imposed a substantial financial burden on the company. The Office of the Commissioner of GST & Central Excise (Appeals - I) has set aside the original order, providing relief to the insurance provider.

Appeal Details

The Appellant Authority's decision, dated August 19, 2025, nullified the Order in Original No.102/2024 CH.N (ADC) (GST) issued on August 7, 2024, by the Additional Commissioner of GST and Central Excise, Chennai North Commissionerate. This ruling effectively cancels the tax liability of Rs 21.25 lakh and an associated penalty of Rs 2.16 lakh that had been imposed on Care Health Insurance.

Financial Implications

The successful appeal has significant financial implications for Care Health Insurance:

This favorable outcome eliminates a potential financial burden of over Rs 23.41 lakh for the company.

Corporate Disclosure

Religare Enterprises Limited, the parent company of Care Health Insurance, disclosed this development in a regulatory filing dated August 22, 2025. The company stated that the Appellant Authority has granted all consequential reliefs through its order.

Impact on Religare Enterprises

As Care Health Insurance is a material subsidiary of Religare Enterprises Limited, this decision has a positive impact on the parent company as well. Religare Enterprises confirmed in its disclosure that Care Health Insurance's financials are consolidated with Religare Enterprises Limited, suggesting that the favorable ruling will be reflected in the group's financial statements.

Conclusion

This successful appeal marks a significant victory for Care Health Insurance Limited in its tax-related matters. The overturning of the GST order not only provides immediate financial relief but also sets a precedent for the company in handling similar tax issues in the future. Stakeholders of both Care Health Insurance and Religare Enterprises Limited are likely to view this development positively, as it demonstrates the company's ability to effectively challenge and overturn unfavorable tax rulings.

Religare Enterprises Limited (REL) has announced a significant update to its recent preferential allotment of warrants, revising the lock-in period to align with the Securities and Exchange Board of India (SEBI) regulations. This revision comes in response to discussions with stock exchanges during the review of the company's application for in-principle approval of the preferential issue.

Key Details of the Preferential Issue

• REL is issuing up to 6,38,29,782 warrants, each convertible into one fully paid-up equity share with a face value of Rs. 10.00.
• The preferential issue was approved by the Board of Directors on July 11, 2025, and subsequently by shareholders at an Extraordinary General Meeting (EGM) on August 08, 2025.

Revised Lock-in Period

The company has updated Point 18 of the Explanatory Statement to the EGM Notice, which now states:

"The Warrants allotted pursuant to the Preferential Allotment, and the resultant equity shares to be issued and allotted upon exercise of the right attached to the Warrants shall be subject to a lock-in for such period as per the provisions of Chapter V of the SEBI ICDR Regulations."

This revision ensures compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, providing clarity on the lock-in period for both the warrants and the resultant equity shares.

Regulatory Compliance

The announcement, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates Religare Enterprises' commitment to regulatory compliance and transparency. The company has made this information available on its website and has requested stock exchanges to disseminate the same.

Impact on Investors

This revision in the lock-in period aligns the preferential issue more closely with regulatory standards, potentially offering greater clarity and confidence to investors. It ensures that the company's capital raising efforts through this preferential allotment adhere to the latest SEBI guidelines.

Investors and market participants are advised to take note of this update, as it affects the terms of the warrants and subsequent equity shares to be issued by Religare Enterprises Limited.

The company's proactive approach in addressing regulatory discussions and promptly revising its terms showcases its commitment to good corporate governance practices.