Meanwhile, the board of Religare Enterprises (REL) and its wholly owned subsidiary, Religare Finvest (RFL), have approved the separation of the financial services and insurance businesses into two independently listed entities.

The financial services business ' including lending, broking, investment activities, and related ancillary and support services ' will be transferred to RFL on a going concern basis. As consideration for the demerger, RFL will issue fully paid-up equity shares to REL shareholders on a 1:1 basis. Post-demerger, RFL's shareholding pattern will mirror REL's pre-demerger shareholding.

Under the proposed scheme of arrangement, REL will retain its stake in Care Health Insurance Limited (CHIL) which will continue as an insurance-focused entity.

The rationale for the demerger is to segregate the financial services and insurance verticals into focused, standalone entities. The move is aimed at attracting different investor profiles suited to each sector, enabling sharper performance tracking and reward alignment for employees, support the retention of sector-specific talent and resources, unlock shareholder value, and facilitate the pursuit of distinct growth opportunities.

The company aims to complete the process and list RFL in Q1 of FY28.

Pratul Gupta, chief financial officer, Religare Enterprises said, We are simplifying our corporate structure to create two focused, well-capitalised and agile entities with distinct mandates. Each entity will benefit from improved capital allocation efficiency, enhanced transparency for investors, and the ability to optimize its capital structure based on its business characteristics and growth requirements.

This transaction is expected to broaden our combined investor base, reduce complexity, and create two well-capitalised platforms ready to pursue their strategic ambitions independently. We are confident that this transformation will establish both entities as leaders in their respective domains, each with the resources, focus, and flexibility to capitalise on significant growth opportunities ahead.

Religare Enterprises is a diversified financial services group present across three verticals. It offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, affordable housing finance, health insurance and retail broking.

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