The company has taken a major decision – demerger plan approved, two separate companies will be listed.
The Burman family-backed Religare Enterprises Limited has approved a plan to split its financial services and insurance businesses into two separate listed companies. According to the company, the move aims to enhance shareholder value and strengthen strategic focus. The company stated that this is the first major restructuring since the Burman family acquired REL in February 2025.
What will happen under the demerger plan? (Religare Enterprises demerger)
Under the proposed arrangement, REL will retain its stake in Care Health Insurance Ltd, which will continue to operate as an insurance-focused entity.
The financial services business, which includes lending, broking, investment activities, and related support services, will be transferred to its subsidiary, Religare Finvest Ltd, on a continuing operations basis.
Under the demerger, Religare Finvest will issue fully paid-up equity shares to REL shareholders on a 1:1 basis. Following the demerger, Religare Finvest will be listed on the BSE and NSE with the same shareholding structure as REL.
Objective of the Demerger
According to the company, the restructuring aims to simplify operations and create two independent entities, allowing each business to focus on its respective growth strategies and opportunities. The transaction will be implemented through a scheme of arrangement, which will be filed with the National Company Law Tribunal. This will require regulatory and statutory approvals, as well as the approval of shareholders and creditors. The group aims to complete the process and list Religare Finvest by the first quarter of fiscal year 2028.
Impact on Operations and Employees
The company stated that there will be no disruption to business operations during this transition, and there will be no impact on employees, customers, or partners. According to the company, the demerger will strengthen oversight and control mechanisms and align management focus with the performance and objectives of each business.
PRATUL GUPTA, REL’s Chief Financial Officer, stated that the transaction will expand the investor base, reduce complexity, and create strong capital platforms for both entities to independently pursue their strategic plans. He added that this transformation will enable both companies to become leaders in their respective sectors and capitalize on future growth opportunities.
