The board of Religare Enterprises Ltd. has given its go-ahead to the merger of eleven of its entities with itself, the company said in a filing to the stock exchanges on Tuesday.
The plan is part of an effort by the group, run by brothers Malvinder Singh and Shivinder Singh, to consolidate its businesses and maintain an India-focused strategy.
The proposed structure is aimed at streamlining the organisation and is designed to allow REL to achieve its objectives of focused growth-oriented strategy.”Religare said in its filing.
The 11 wholly-owned subsidiaries of the company that are to be merged into REL are:
- Religare Securities (excluding broking business),
- Religare Commodity Broking
- RGAM Investment Advisers
- Religare Venture Capital
- Religare Arts Investment Management
- Religare Capital Finance
- RGAM Capital India
- Religare Investment Advisors
- Religare Support Services
- Religare Arts Initiative
- Religare Capital Markets (India).
These entities will merge with/into Religare Enterprises subject to terms and conditions as per the scheme of amalgamation.
The company, since May this year, has considered various options to simplify corporate structure to optimise resource utilisation.
REL said the amalgamation will eliminate multiple legal entities and reduce operational and administrative costs while focusing resources on its core businesses.
Religare Enterprises is holding company for its diversified financial services groups.
At 10:45 a.m. shares of the company rose 0.7 percent to Rs 255 apiece, building on 5.2 percent gains it made a day before.
With inputs from PTI
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