Financial services firm Religare Enterprises today announced reorganisation of its existing businesses into three separate listed entities with a view to unlock value.
As per the scheme of arrangement, the existing operating businesses–Lending, Health Insurance and Capital markets will be listed as three separate entities.
Currently, REL is the non-operative holding company for its various underlying operating businesses and is listed on the NSE and the BSE stock exchanges.
“The proposed demerger will help unlock value of various business under the holding company and give options to investors to invest in business of their choice,” REL Chairman and Managing Director Sunil Godhwani said.
“Over the past one year we have taken a number of key steps to consolidate our portfolio and maintain a conscious India focused strategy,” he said.
To further accelerate the growth trajectory of three businesses, it is very important to create the right enabling framework that would only simplify the corporate structure, he said.
The proposed plan is subject to further review and approval by the REL Board and subsequent approval by the shareholders, relevant regulatory and judicial authorities.
Religare has exited from its asset management business.
The lending business operated through its subsidiary Religare Finvest Limited (RFL) with focus on SME lending with a total book size of Rs 16,310 crore as on March March 2016.
It also has affordable housing finance business arm Religare Housing Finance Development Corporation Limited loan book size of Rs 820 crore.
Religare Health Insurance is standalone health insurance business with Gross written premium of Rs 503.3 crore in the financial year ended March 31, 2016.
The retail capital markets business is operated through Religare Securities Limited (RSL). It also houses the wealth management business through its subsidiary Religare Wealth Management Ltd.
Earlier this year, Max India also demerged itself into three entities Max Financial Services, Max India and Max Ventures and Industries Limited.