The Burman Group said it will work with REL's leadership and board to reinforce its strategic direction and enhance long-term value creation.
The regulator's order, passed on February 14, noted the lack of necessary approvals and financial ability as reasons
The source stated that besides listing of the three firms, the plan to meet its divestment target of Rs 1,5000 crore also includes sale of its stake in NTPC-SAIL Power Company Ltd (NSPCL), which is expected this fiscal year.
Religare Enterprises Ltd (REL) and several of its fully owned entities will approach the National Company Law Tribunal (NCLT) for the proposed amalgamation of these subsidiaries into REL.
For the 2015-16 fiscal, the company posted profit of Rs 83.82 crore as compared to loss of Rs 103.50 crore in the previous fiscal.
Net sales grew by over fourfold to Rs 49,819.13 crore in the October-December quarter this fiscal from Rs 12,432.43 crore in the same quarter of 2014-15 fiscal.
Religare Enterprises on Friday reported nearly five-fold jump in net profit at Rs 37.94 crore during April-June quarter of 2015-16.
According to Ashok Goel, vice chairman and managing director of Essel Propack, "RPLL, REL are perennially sick companies, and the merger will assure the companies get oxygen to survive. Also, this will add 160 million tubes capacity, which ensures that Essel Propack is on growth path."