Religare Enterprises Limited (REL) has achieved a significant milestone in its capital raising efforts. The company has received in-principle approval from both the National Stock Exchange of India (NSE) and BSE Limited (formerly known as Bombay Stock Exchange) for issuing preferential warrants worth ₹1,500 crore.

Approval Details

According to the company's regulatory filing, Religare Enterprises has been granted permission to issue 6,38,29,782 warrants convertible into an equivalent number of equity shares. The warrants are priced at ₹235.00 per warrant, bringing the total issue size to approximately ₹1,500 crore.

Significance of the Approval

This approval marks a crucial step for Religare Enterprises, allowing the company to proceed with its capital raising plans. The in-principle nod from both major stock exchanges paves the way for the company to strengthen its financial position and pursue growth opportunities.

Key Points of the Warrant Issue

Regulatory Compliance

The approval comes with several conditions that Religare Enterprises must adhere to:

1. The company must file the listing application at the earliest from the date of allotment.
2. All statutory and other approvals must be obtained, and guidelines issued by regulatory authorities such as SEBI, RBI, and MCA must be complied with.
3. The company needs to comply with all applicable guidelines, regulations, and directions of the stock exchanges and statutory authorities.
4. Adherence to the conditions set forth in the SEBI (LODR) Regulations, 2015, Companies Act, 2013, and other applicable laws is mandatory.

Timeline and Next Steps

The in-principle approval follows the shareholders' approval obtained during an Extraordinary General Meeting. Religare Enterprises is now poised to move forward with the warrant issuance process, subject to fulfilling all regulatory requirements and conditions stipulated by the stock exchanges.

Implications for Investors

This development is significant for both existing and potential investors in Religare Enterprises. The successful completion of this preferential issue could potentially lead to an influx of funds, which may be utilized for various corporate purposes, including business expansion, debt reduction, or strengthening the company's balance sheet.

As the company progresses with this capital raising initiative, market participants will likely keep a close watch on how Religare Enterprises deploys the funds and the subsequent impact on its financial performance and market position.

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.