Home / Business and Economy / Religare Enterprises Demerges Finvest Arm
Religare Enterprises Demerges Finvest Arm
15 Feb
Summary
- Board approves demerger into two distinct entities.
- Shareholders to receive new shares on a 1:1 basis.
- New entity to house lending and broking operations.
Religare Enterprises Limited (REL) has announced its board's approval for a significant corporate restructuring through a demerger. The company will be divided into two distinct entities: Religare Enterprises and Religare Finvest Limited (RFL).
This strategic move, based on committee recommendations, aims to simplify REL's corporate structure. Religare Finvest will issue fully paid-up equity shares to REL's shareholders on a 1:1 basis, mirroring the pre-demerger shareholding pattern.
Under the arrangement, the new Religare Finvest entity will encompass lending, broking, and investment activities. Religare Enterprises will retain its shareholding in Care Health Insurance Limited, enabling both entities to pursue focused growth strategies.
