Shares of Religare Enterprises Ltd. declined on Monday, February 16, as the Burman family-backed company is set to demerge its insurance and financial services businesses.Regligare Enterprises will demerge Religare Finvest and the two will exist as separate entities, with the former being an insurance company and the latter being a financial services firm.
The financial services company will include lending, broking and investment.
Religare Finvest will be listed on the stock exchanges. Post the demerger, it will issue shares in the 1:1 ratio to shareholders of Religare Enterprises.Regulator approvals from the Securities and Exchange Board of India (SEBI), Reserve Bank of India and the National Company Law Tribunal (NCLT) are required for the same.
The demerger is expected to be completed by the first quarter of the financial year 2028.
Shares of Religare Enterprises declined 5.2% to hit an intraday low of 231.21 apiece on Monday. The stock has declined 4.6% in the past six months.
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