Centrum Capital Limited announced that its Board of Directors has approved the sale of its Merchant Banking Division to its subsidiary, Centrum Broking Limited (CBL), via a slump sale. The transaction is expected to be completed within the next 2-3 months, subject to regulatory approvals. The consideration for the sale is ₹1,79,00,000 (Rupees One Crore, Seventy-Nine Lakhs only), subject to adjustments. The Merchant Banking Division contributed ₹1,119.33 Lakh in turnover and had a negligible net-worth contribution for FY 2024-25. This contribution represented 0.32% of Centrum Capital's consolidated turnover for the same period. The rationale for the sale is to comply with SEBI's conditions for the final registration of Centrum Broking Limited as a Category I Merchant Banker. This move is part of a larger restructuring where Centrum Financial Services Limited, the parent company, is converting into a Non-Operative Financial Holding Company. Following the sale, Centrum Capital will surrender its Merchant Banker registration to SEBI, but the group will continue to offer these services through CBL. The transaction is classified as a related party transaction and will be conducted at arm's length. There will be no change in the shareholding pattern of Centrum Capital Limited as a result of this sale.
