Religare eyes value unlocking through Care Health's listing: Exclusive

In a large, strategic move, Religare Enterprises is preparing to take its health insurance arm Care Health Insurance public, people with knowledge of the matter told CNBC-TV18 exclusively.

The sources said that the holding company is working on a scheme of arrangement, that will pave the way for a share swap allocation and eventual public listing of Care Health Insurance.

Based on the current shareholding pattern, Religare currently holds a 62.8% stake in Care Health. The share swap will unlock value not only for Religare, but also for minority investors, the sources added.

Potential Valuation

According to sources, Care Health is likely to be valued between ₹16,000 crore to ₹17,500 crore, which is in-line with the listing premiums seen in other high-growth health insurers.

Rights Allotment, Shareholding and Capital Structure

In September, Religare is said to have been allocated rights shares in Care Health at ₹149 per share to maintain flexibility ahead of the corporate restructuring. The rights issue values Care Health at around Rs 14,500 crore.

Post the potential listing, Religare intends to continue focusing on its core verticals: broking and lending, according to the sources.

To support the listing plan, Religare is instigating a major revamp at the top. Several key management positions are being rejigged.

CNBC-TV18 reached out to Religare Enterprises for a comment at the time of writing this story, but an official response from the company is awaited.

Shares of Religare Enterprises are trading 1.8% lower on Monday at ₹259.9. The stock is up 3% in the last one month.