New Delhi, February 15 Religare Enterprises Ltd (REL), backed by the Burman family, has approved a plan to separate its financial services and insurance businesses into two separate, publicly listed entities. This move aims to unlock shareholder value and sharpen strategic focus.
This is the first major restructuring announced by the company since the Burmans took control of REL in February 2025, the financial services firm said in a statement.
Under the proposed arrangement, REL will retain its stake in Care Health Insurance Ltd, which will continue as an insurance-focused entity, it said.
The financial services business—which includes lending, broking, investment activities, and related support services—will be transferred to its subsidiary, Religare Finvest Ltd (RFL), on a going-concern basis, it said.
"As part of the demerger consideration, RFL will issue fully paid-up equity shares to REL's shareholders on a 1:1 basis. After the demerger, RFL will be listed on the BSE and NSE with a corresponding shareholding structure as REL," it said.
The company said the restructuring aims to streamline operations by creating two independent entities, allowing each business to pursue sector-specific growth strategies and opportunities.
The transaction will be implemented through a scheme of arrangement to be filed with the National Company Law Tribunal and is subject to statutory and regulatory approvals, including those from shareholders and creditors, it said.
The group aims to complete the process and list RFL by the first quarter of fiscal year 2028, it said.
The company added that there will be no disruption to business operations or impact on employees, customers, or partners during the transition period.
The demerger is expected to strengthen oversight and control mechanisms while enabling more focused management attention aligned with the performance and objectives of each business, it added.
Religare's Chief Financial Officer, Pratul Gupta, said this transaction is expected to broaden the combined investor base, reduce complexity, and create two well-capitalized platforms ready to pursue their strategic ambitions independently.
This transformation will establish both entities as leaders in their respective domains, each with the resources, focus, and flexibility to capitalize on significant growth opportunities ahead, he said.