Care Health Insurance Raises Rs. 150 Crore Through NCDs

TL;DR

• 30 Oct 2026: Care Health Insurance has raised Rs 150 crore by issuing subordinated NCDs.

• The debentures carry a fixed coupon rate of 10.50% p.a.

• The instruments have a 10-year life and are scheduled to mature on October 30, 2036.

• Care Health Insurance has the option to redeem the debt after five years, subject to applicable conditions.

• The fundraising follows two earlier subordinated debt issues totalling Rs. 300 crore in August and September 2026.

Introduction

Religare Enterprises Limited’s subsidiary, Care Health Insurance Limited has raised Rs 150 crore through subordinated non-convertible debentures (NCDs) at a fixed annual rate of 10.50 per cent.

Religare Enterprises said it has allotted 15,000 debentures of Rs. 1 lakh each through a private placement, in a stock exchange disclosure dated October 30, 2026. The latest Care Health Insurance NCD issue comes as the insurer seeks to bolster its capital position and support business growth. It also gives an insight into the company's solvency position, cost of borrowing and future financial obligations.

The fundraising is a significant development for investors tracking Care Health Insurance unlisted shares as it injects capital without issuing new equity shares.

Care Health Insurance NCD issue 2026: Key details

Religare Enterprises disclosed the transaction under Regulation 30 of the Securities and Exchange Board of India's Listing Obligations and Disclosure Requirements Regulations, 2015.

The following table summarises the terms of the latest issue.

Source: Religare Enterprises Limited, NSE and BSE disclosure dated October 30, 2026.

Why is Care Health Insurance raising Rs 150 crore?

1. The latest round of fund raising will help Care Health Insurance shore up its capital position while it continues to grow its health insurance business.

2. Insurance companies need sufficient money to support growth in premiums, policyholder obligations and regulatory solvency requirements.

As per the disclosures of Religare for FY26, the solvency ratio of Care Health Insurance stood at 1.68 times as on March 31,2026. It then fell to 1.58 times as of June 30, 2026, compared with the regulatory control level of 1.50 times. During the Q1 FY27 earnings call, management acknowledged the reduction and indicated that it intended to maintain solvency at approximately 1.7 times through appropriate capital measures.

The August, September and October NCD issues should therefore be viewed in the context of the insurer's capital requirements. However, the company has not established through the October 30 announcement what its solvency ratio will be after the latest issue.

The Benefits of Subordinated Debt to an Insurance Company

Subordinated debt is different from equity fundraising in that it allows a company to raise capital without issuing additional ownership shares. The eligible subordinated debt may also be considered as regulatory capital for an insurer subject to IRDAI rules and applicable limits.

It gives Care Health Insurance an alternate route to raise capital without disturbing the existing equity ownership structure. But the company has to take into account interest costs and eventual debt repayment.

Care Health Insurance raises Rs. 450 crore through three NCD issues in 2026

The October announcement is not the company's first subordinated debt transaction this financial year. Care Health Insurance had already raised Rs. 300 crore through two separate NCD issues in August and September 2026.

Source: Religare Enterprises' respective exchange disclosures dated August 6, September 18 and October 30, 2026.

Latest quarterly update: Q1 FY27

Source: NSE Archives Page 7

10.50% coupon in  Care Health Insurance NCD issue-What does it mean? 

The coupon rate is the rate of interest that is agreed to be paid on a debt instrument. The latest Care Health Insurance NCD issue carries a fixed coupon rate of 10.50% p.a. This translates into an annual contractual interest amount of around Rs. 15.75 crore at the full issue value of Rs. 150 crore assuming the entire principal amount remains outstanding.

But these debentures are not the same as regular secured corporate bonds. The instruments are unsecured and subordinated, meaning that in the event of a liquidation the holders have a lower priority of repayment than senior creditors.

Also, the interest payments are governed by the IRDAI regulations. Prior regulatory approval may be necessary if an interest payment would bring the insurer's solvency below the prescribed level, or if the payment results in or increases a net loss.

Under the October issue terms, unpaid interest is accumulated and may be paid subsequently with annual compounding, subject to applicable laws. Non-payment under specified regulatory circumstances does not automatically constitute a default.

These provisions mean that debt investors need to look at the terms, rather than just the coupon rate.

What is the impact of Rs.150 Crore fundraise ?

The development is relevant for investors following Religare (Care) Health Insurance unlisted shares, but does not necessarily mean an increase in their market value. There are three important factors to take into account.

1. Additional capital can drive business growth

Health insurers need capital to grow their business and meet regulatory requirements. Care Health Insurance may raise further debt capital in an effort to give itself greater financial freedom to grow and still be in the required solvency position.

2. The NCD issue does not dilute equity ownership

Care Health Insurance has not issued fresh equity shares but has borrowed debt in this transaction.Thus, the October NCD allotment does not impact the number of equity shares directly with the present shareholders.

But future offerings of equity could change the ownership structure.

3. Higher borrowing costs could impact profitability

The annual coupon of 10.50% is a commitment of money. The extra capital can help the company grow, but the company has to balance paying off the debt with paying claims, operating costs and regulatory requirements.

For investors in unlisted shares, future profitability, solvency, premium growth and capital requirements will be the more meaningful indicators.

Conclusion

Care Health Insurance’s Rs. 150 crore subordinated NCD issue is another chapter of the company’s capital raising activities in FY27. The insurer has made three NCD allotments aggregating Rs. 450 crore between August and October 2026 to strengthen its funding position while supporting its expanding insurance business.

For investors tracking unlisted shares of Care Health Insurance, the development provides a useful insight into the capital strategy of the company.But the higher cost of borrowing and the regulatory conditions attached to subordinated debt also deserve attention.

The key question now is how effectively Care Health Insurance converts this additional funding into stronger solvency, sustainable growth and improved financial performance.

FAQs

How much was Care Health Insurance’s NCD issue raised in October 2026?

Care Health Insurance to raise Rs 150 crore through Subordinated NCDs on Oct 30, 2026.

What is Care Health Insurance NCD Interest Rate?

The NCD issue of October 2026 carries a fixed annual coupon rate of 10.50% subject to the payment conditions of IRDAI.

When will Care Health Insurance’s NCDs mature?

The debentures will have a tenure till 30th October, 2036 unless redeemed earlier by Care Health Insurance.

Care Health Insurance unlisted shares effect of NCD issue?

It can also improve the capital structure of the company by raising debt instead of equity. But the impact on share valuations is unclear.