Religare Enterprises to list 3 separate entities

The Dollar Business Bureau

Religare Enterprises Limited (REL) on Friday said it would reorganise its existing businesses into three separate entities with an aim to unlock value. According to the new arrangements, the company’s existing operating businesses- capital markets, health insurance and lending will now be listed as three separate entities.

The REL Chairman and Managing Director Sunil Godhwani said that the proposed demerger will help unlock value of various businesses under the holding company. This will provide options to the investors also to fund in business of their choice. Over the past one year the company has taken a number of key steps to consolidate its portfolio and maintain a focused strategy in India.

He emphasised on accelerating the growth momentum of REL’s three existing businesses through right framework that could further simplify the company’s corporate structure. However, the proposed plan is subject to approval by the REL Board as well as by the judicial authorities, relevant regulatory bodies and shareholders. Religare has already opted out from its asset management business.

REL’s lending business functions through its subsidiary Religare Finvest Ltd (RFL), which focuses on SME lending. The financial services firm also has a housing finance business division, Religare Housing Finance Development Corporation Ltd., with loan book size of Rs.820 crore.

Religare’s retail capital markets business is operated through Religare Securities Limited (RSL). This business segment houses the wealth management business, which is operated through Religare Wealth Management Ltd.