Religare Enterprises announces demerger to unlock shareholder value | Company News

Burman family-backed Religare Enterprises Ltd (REL) has approved a plan to split its financial services and insurance businesses into two separate listed entities, in a move aimed at unlocking shareholder value and sharpening strategic focus.

This is the first major restructuring announced by the company since Burmans took over REL in February 2025, the financial services firm said in a statement.

Under the proposed scheme of arrangement, REL will retain its shares in Care Health Insurance Ltd, which will continue as an insurance-focused entity, it said.

The financial services business, comprising lending, brokerage, investment activities and related support services, will be transferred to its subsidiary Religare Finvest Ltd (RFL) on a permanent basis, it said.

“As part of the demerger consideration, RFL will issue fully paid-up equity shares to REL shareholders on a 1:1 mirror basis. Post demerger, RFL will be listed on BSE and NSE as REL with mirror image shares,” he said.

The restructuring aims to streamline operations by creating two independent entities, allowing each business to pursue industry-specific growth strategies and opportunities, the company said.

The transaction will be implemented through a plan of arrangement to be submitted to the National Company Law Tribunal and will be subject to legal and regulatory approvals, including shareholders and creditors’ approvals, it said.

The group aims to complete the process and list RFL by the first quarter of FY28, it said.

The company added that there will be no interruption to business operations during the transition period and no impact on employees, customers or partners.

The demerger is expected to strengthen oversight and control mechanisms, as well as provide more focused management attention aligned with each business’s performance and objectives, he added.

This transaction is expected to expand the combined investor base, reduce complexity and create two well-capitalized platforms ready to pursue their strategic objectives independently, REL Chief Financial Officer Pratul Gupta said.

He said this transformation will position both organizations as leaders in their respective fields, and each will have the resources, focus and flexibility to capitalize on the significant growth opportunities ahead.