Religare's Bold Demerger: A Strategic Shift to Boost Growth

Religare Enterprises Ltd plans to demerge its financial and insurance businesses into two independently listed entities, enhancing strategic focus and shareholder value. The restructuring will see the financial services move to Religare Finvest Ltd, with a mirrored shareholding arrangement. Completion is targeted by FY28's first quarter.

Religare Enterprises Ltd, backed by the Burman family, has unveiled a strategic restructuring plan to demerge its financial services and insurance businesses. This move aims to unlock shareholder value and focus on growth strategies for each sector-specific entity.

The financial operations will transition to its subsidiary, Religare Finvest Ltd, on a going-concern basis. Shareholders of REL will receive fully paid equity shares in RFL, maintaining a mirror image of the existing shareholding structure. Post-demerger, RFL will list on both BSE and NSE.

The company emphasizes that the transition will not disrupt business operations, employees, customers, or partners. Set for completion by FY28's first quarter, this transformation positions each entity for strategic growth. CFO Pratul Gupta underscores that the demerger will simplify operations and enhance capitalisation, establishing both entities as sector leaders.

(With inputs from agencies.)