Religare Enterprises Limited (REL) and Religare Finvest Limited (RFL) have approved a scheme of arrangement for the demerger of REL's financial services business into RFL. This demerger will create two independent, listed entities: one focused on financial services (RFL) and the other retaining the insurance business, including REL's stake in Care Health Insurance Limited. The financial services business to be demerged includes lending, broking, investment activities, and ancillary support services. This move aims to streamline businesses, unlock shareholder value by separately listing RFL, provide focused management attention, and enhance risk management and compliance tailored to each business. Under the scheme, RFL will issue one equity share of face value ₹10 to REL shareholders for every one equity share of face value ₹10 held in REL. Following the demerger, RFL's shareholding pattern will mirror REL's pre-demerger pattern, and RFL will be listed on BSE and NSE. No cash consideration is involved. The demerger is subject to approvals from shareholders, creditors, the National Company Law Tribunal (NCLT), and other regulatory authorities. Mr. Pratul Gupta, CFO of Religare Enterprises Limited, stated that the corporate structure simplification aims to create two focused, well-capitalized, and agile entities with distinct mandates, improving capital allocation, transparency, and the ability to optimize capital structure. The company expects the demerger process to be completed and RFL listed in Q1 FY28. Business operations, employees, customers, and partners will not be interrupted during the implementation period.
