Crest Ventures jumps 6% as board approves financial services biz demerger

Crest Ventures shares jumped 6 per cent, logging an intra-day high at ₹383 per share. The buying on the counter came after the company’s board approved the demerger of its financial services business.

 

At 10:01 AM, Crest Ventures’ share price was trading 5.74 per cent higher at ₹382 per share on BSE. In comparison, the BSE Sensex was up 0.59 per cent at 84,980.21. 

 

The company has a total market capitalisation of ₹1,086.78 crore. Its 52-week high was at ₹498, and its 52-week low was at ₹304.55. 

 

Crest Ventures’ board has approved a Scheme of Arrangement to demerge its financial services business into a separate company called Crest Capital and Investment.  READ LATEST STOCK MARKET UPDATES TODAY LIVE  

The demerged undertaking comprises all assets, liabilities, contracts, employees and operations linked to Crest Ventures’ financial services business.

 

This entire business will be transferred as a going concern, on an “as is where is” basis, from Crest Ventures (demerged company) to Crest Capital and Investment (resulting company).

 

The company wants to demerge its financial services business for the following reasons:

 

Focused strategy: Financial services is a distinct business with its own risk profile, competition and growth drivers, and needs a dedicated, sector-specific strategy.

 

Different investor base: The financial services business can attract its own set of investors, strategic partners and lenders who are specifically interested in this segment.

 

Risk management: Separating it from the other businesses helps from a broader risk management perspective.

 

Value unlocking and simpler structure: The demerger is expected to simplify the group structure, provide more flexibility for exits, and unlock value in the financial services business for Crest’s shareholders.   ALSO READ | Laurus Labs zooms 73% in 2025, hits new high; what's driving pharma stock?

How will shares be allocated? 

There is no cash consideration. Shareholders of Crest Ventures will receive shares in Crest Capital and Investment as follows:

 

For every 2 fully paid-up equity shares of ₹10 each held in Crest Ventures, shareholders will get 1 fully paid-up equity share of ₹10 each in Crest Capital and Investment. This is a 1:2 share entitlement ratio.

 

After the Scheme becomes effective, Crest Capital and Investment will issue new shares to eligible Crest Ventures shareholders as per the above ratio. 

 

Further, the resulting company is proposed to be listed on BSE and the National Stock Exchange of India (NSE) Limited, subject to receipt of requisite approvals from applicable statutory and regulatory authorities.