Care Health Insurance Opens ₹150 Crore Rights Issue for Existing Shareholders

​Care Health Insurance Limited, one of India's leading standalone health insurance providers, has officially opened its much-anticipated rights issue for existing shareholders. The company is aiming to raise nearly ₹150 crore through the issuance of 93,73,326 equity shares, strengthening its capital base and supporting future growth initiatives.

According to the Letter of Offer issued by the company, eligible shareholders will be able to subscribe to the rights issue in the ratio of 4 equity shares for every 425 fully paid-up equity shares held as of the record date, May 29, 2026. The issue is priced at ₹160 per share, comprising a face value of ₹10 and a premium of ₹150 per share. The total fundraising size stands at approximately ₹149.97 crore.

The rights issue opened on June 17, 2026, and will remain open until June 24, 2026. Existing shareholders can apply either through the Composite Application Form (CAF) provided by the company or through the Registrar's Web-based Application Platform (R-WAP), subject to eligibility conditions.

The company has stated that the primary objective of the fundraising exercise is to support future business expansion and strengthen its regulatory solvency position. In the insurance sector, maintaining adequate solvency margins is crucial for ensuring financial stability and meeting regulatory requirements set by the Insurance Regulatory and Development Authority of India (IRDAI).

Industry observers believe the capital infusion could help Care Health Insurance further enhance its market presence, invest in technology-driven initiatives, expand distribution networks, and capitalize on the growing demand for health insurance products across India. The Indian health insurance market has witnessed significant growth in recent years, driven by rising healthcare costs, increased awareness about health coverage, and growing penetration in tier-2 and tier-3 cities.

Shareholders who wish to participate in the rights issue are advised to carefully review the offer document, application procedures, and eligibility criteria before making an investment decision. The company has also provided facilities for renunciation and additional share applications in accordance with the terms of the issue.

With the rights issue now underway, investors and market participants will closely monitor subscription levels, which could provide insights into shareholder confidence in Care Health Insurance's long-term growth prospects and strategic direction.