Centrum Capital Limited announced that its Board of Directors has approved entering into a Business Transfer Agreement (BTA) to transfer and sell its Merchant Banking Division to its subsidiary, Centrum Broking Limited (CBL), via a slump sale. The transaction is valued at ₹1.79 Crore (Rupees One Crore, Seventy-Nine Lakhs), subject to adjustments. This move is part of a strategic restructuring where Centrum Financial Services Limited, the parent of CBL, needs to convert into a Non-Operative Financial Holding Company. To comply with SEBI's conditions for CBL's registration as a Category I Merchant Banker, Centrum Capital is required to surrender its own Merchant Banker license and transfer the division's assets and liabilities to CBL. The turnover of the Merchant Banking division for FY 2024-25 was ₹1,119.33 Lakhs, contributing 0.32% to the consolidated turnover of the company. The buyer, Centrum Broking Limited, is a wholly-owned subsidiary of Centrum Financial Services Limited. The transaction is considered a related party transaction and is being conducted at arm's length. The company will also apply for the surrender of its Certificate of Registration as a Merchant Banker. The transaction is expected to be completed within the next 2-3 months, subject to regulatory approvals. Following the transfer, Centrum Capital will cease to be a Merchant Banker, but the Group will continue to offer these services through Centrum Broking Limited. There will be no change in the shareholding pattern of Centrum Capital Limited as a result of this transaction.
