COMPETITIVE · INDIA
Religare splits into separately listed finance and insurance entities
Change
Religare Enterprises approved a scheme to demerge its financial services business into subsidiary Religare Finvest and list it on BSE and NSE with a 1:1 share issuance to Religare shareholders while retaining Care Health Insurance as an insurance-focused entity.
Why it matters
The approved demerger transfers Religare’s lending, broking, investment and related support services to Religare Finvest on a going-concern basis, with Religare Finvest to be listed on BSE and NSE. Consideration is via fully paid equity shares issued by Religare Finvest to Religare Enterprises shareholders on a 1:1 mirror basis, resulting in mirror-image shareholding post-demerger. Religare Enterprises will continue to hold its stake in Care Health Insurance, positioning the remaining entity around insurance. The separation changes how investors and counterparties assess capitalization, risk, and performance by business line because financial services and insurance will report and be valued independently. This is the first major restructuring announced since the Burman family takeover in Feb 2025.
Implications
- • Two listed entities replace one consolidated exposure for investors
- • Mirror-share issuance changes free float and liquidity profiles
- • Standalone financials reset peer comps and valuation benchmarks
- • Counterparty and funding assessments shift to entity-level balance sheets
Who is affected
- • Religare Enterprises shareholders
- • Religare Finvest (RFL) management and employees
- • Care Health Insurance stakeholders (policyholders, partners)
- • Institutional investors tracking BSE/NSE-listed financials and insurers
Source
Topics
Business & Markets Mergers & Acquisitions Finance & Banking Financial Services Insurance