Burman backed Religare to split financial services and insurance arms: What changes for shareholders

Religare Enterprises Ltd (REL) has approved a restructuring plan to separate its financial services and insurance businesses into two independently listed entities. This marks the first major corporate overhaul since the Burman family took control of the company in February 2025.

In a statement, the company said the move is intended to unlock shareholder value and sharpen business focus by allowing each segment to operate independently.

What the company will retain

Under the proposed scheme of arrangement, REL will continue to hold its stake in Care Health Insurance Ltd, which will remain the group’s insurance-focused entity. 

The financial services operations – including lending, broking, investment activities and related support services – will be transferred on a going-concern basis to its subsidiary Religare Finvest Ltd (RFL).

“As part of the demerger consideration, RFL will issue fully paid-up equity shares to shareholders of REL on a 1:1 mirror basis. Post-demerger, RFL will be listed on BSE and NSE with mirror image shareholding as REL,” the company said. 

Why the restructuring is being done

REL said the restructuring is aimed at streamlining operations by creating two independent entities so each business can pursue sector-specific growth opportunities. It added that 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.

REL Chief Financial Officer Pratul Gupta said the transaction will simplify the structure and widen investor participation. “This transaction is expected to broaden the combined investor base, reduce complexity, and create two well-capitalised 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 capitalise on significant growth opportunities ahead,” he said.

Approvals and timeline

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. The group aims to complete the process and list RFL by the first quarter of FY28.

The company said there will be no interruption to business operations and no impact on employees, customers or partners during the transition period. 

Post-demerger, RFL will be listed on BSE and NSE with mirror image shareholding as REL.