Religare Enterprises shares drop 5% after announcing demerger plan

As part of the consideration for the demerger, Religare Finvest will issue fully paid-up equity shares to Religare Enterprises shareholders in a 1:1 ratio

Shares of Religare Enterprises Ltd. fell over 5 per cent intraday on Monday after it approved plan to demerge its financial services and insurance businesses into two separately listed entities. 

 

The company's stock fell as much as 5.24 per cent during the day to ₹231.2 per share, the biggest intraday fall since February 11 this year. Religare Enterprises stock pared losses to trade 3 per cent lower at ₹236.6 apiece, compared to a 0.15 per cent advance in Nifty 50 as of 11:55 AM. 

 

Shares of the company fell for the fourth straight session and currently trade at 6.5 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 3.55 per cent this year, compared to a 2.5 per cent decline in the benchmark Nifty 50. Religare Enterprises has a total market capitalisation of ₹7,863.69 crore.   FOLLOW LATEST STOCK MARKET UPDATES LIVE

 

Religare Enterprises announces demerger

Religare Enterprises and Religare Finvest Ltd. have approved a demerger plan to separate the group's financial services and insurance businesses into two independently listed entities.

 

Under the proposed scheme of arrangement, REL will retain its stake in Care Health Insurance Ltd. (CHIL), which will continue as the insurance-focused entity. The financial services business, comprising lending, broking, investment activities, and related ancillary and support services, will be transferred to RFL on a going-concern basis.

 

The company said the demerger aims to streamline operations by creating two focused entities that can attract distinct investor profiles aligned with their respective sectors. It also plans to list the financial services business separately through RFL, which is expected to unlock shareholder value and enable each entity to pursue independent growth strategies.

 

REL added that the restructuring will allow for sharper management focus, better alignment of employee performance with business outcomes, and improved ability to attract sector-specific talent. Additionally, it expects to implement business-specific risk management policies and internal compliance frameworks to strengthen monitoring and control mechanisms.  ALSO READ | KFin Technologies shares jump 6% on posting healthy Q3FY26 results 

As part of the consideration for the demerger, RFL will issue fully paid-up equity shares to REL shareholders in a 1:1 ratio. Following the demerger, RFL’s shareholding pattern will mirror REL’s pre-demerger structure.

 

"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," Pratul Gupta, chief financial officer, Religare Enterprises, said in the statement.