Religare Enterprises initiates IPO process for Care Health Insurance

Religare Enterprises initiates IPO process for Care Health Insurance.

Expert Analysis:

• Religare Enterprises has initiated the IPO process for its subsidiary, Care Health Insurance, ₹ 2,320 crore (OTS) with Religare Finvest.

•  It is planning an IPO that could potentially raise ₹ 1,500-2,000 crore through an equity dilution of 15-20%.

• The valuation of Care Health Insurance is projected between 4X to 8X Price/Book Value (P/BV), with Religare Enterprises’ stake valued between ₹ 7,620 Cr to ₹ 15,240 Cr.

• The funds raised were earmarked to enhance solvency, which currently stands at 1.73 times the regulatory minimum, and provide growth capital, 

• RELG has demonstrated a strong return over the last five years, reinforcing the company's consistent growth and stability.