Diversified group Religare Enterprises has given its go-ahead to the merger of several of its entities with itself for better synergy and simplifying corporate structuring.
The decision was taken at the Board of Directors meeting held today to approve the scheme for amalgamation of 11 fully owned subsidiaries with the company.
"The Board of Directors of Religare Enterprises Ltd (REL) has on Tuesday, approved a scheme of amalgamation that is designed to simplify the Company's corporate structure," it said in a regulatory 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 and Religare Capital Markets (India).
Religare Enterprises (REL) said these entities will merge with/into Religare Enterprises subject to terms and conditions as per the scheme of amalgamation.
"This is in continuation of the steps the company has taken over the past few months to consolidate its portfolio of businesses and maintain a conscious India focused strategy," it added.
The Company, since May this year, has considered various options to simplify corporate structure to optimise resource utilisation.
"The proposed structure is aimed at streamlining the organisation and is designed to allow REL to achieve its objectives of focused growth oriented strategy," it said in the filing.
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.
Stock of the company today closed 4.34 per cent higher at Rs 248.95 on the BSE.
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