Religare Enterprises Limited disclosed that its material subsidiary, Care Health Insurance Limited (CHIL), has allotted debentures. The disclosure was made pursuant to Regulation 30 of SEBI LODR Regulations.

Key Quantitative Figures

  • Number of Debentures: 15,000
  • Face Value per Debenture: ₹1,00,000
  • Total Issue Size: ₹150 Crore (₹1,50,00,00,000)
  • Coupon Rate: 10.50% per annum
  • Tenor: 10 years from the deemed date of allotment (October 30, 2026)
  • Maturity Date: October 30, 2036

Terms and Conditions

  • The debentures were allotted for cash, at par, in dematerialized form.
  • The issuance was made on a private placement basis.
  • The debentures are listed on the National Stock Exchange of India Limited.
  • CHIL holds a call option exercisable at the end of 5 years and every year thereafter.
  • Interest will be paid annually and charged to CHIL's profit and loss account.

Regulatory Framework and Payment Conditions

Payment of interest is subject to strict IRDAI regulations:

  • CHIL is not liable to pay interest for any financial year if prohibited by IRDAI laws.
  • Prior IRDAI approval is required for interest payment if:
  • CHIL's solvency margin is below the control level
  • Payment would cause solvency to fall below regulatory requirements
  • Payment would result in or increase a net loss for CHIL
  • Unpaid interest will be cumulated and paid on subsequent payment dates compounded annually at 10.50%, subject to IRDAI compliance.

Special Clauses

  • Non-payment of interest or penal interest due to IRDAI provisions shall not constitute an event of default.
  • The only restriction during such non-payment periods is that CHIL cannot distribute dividends to equity shareholders.
  • Calling of an event of default for non-payment is subject to IRDAI laws prevailing at the time of default declaration.
  • Payment of any penal interest requires IRDAI approval and must be charged to CHIL's profit and loss account.

Security and Other Features

  • No charge/security created over assets
  • No special rights/privileges attached to the instrument
  • No history of delay in payment (not applicable as new issuance)
  • No redemption of preference shares involved
  • No cancellation of issuance proposal

Annexure Details

The annexure provides comprehensive details including issuer name (CHIL), instrument type, issue size, listing exchange, tenure, coupon details, and all special conditions related to IRDAI compliance.