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The Burman family has increased its stake in financial services major Religare Enterprises Limited (REL) to nearly 30.3% in recent weeks, according to various exchange filings by the acquiring entities.

This acquisition comes ahead of the demerger of Care Health Insurance. As per the filings, entities controlled by the Burman family, along with persons acting in concert, acquired an additional 1.3 crore shares, taking their overall stake to 30.3%.

The acquisition was carried out through multiple open market transactions in March. The Burman family also holds certain warrants, which, once converted next year, will increase their stake in REL to around 34% by FY27.

Earlier in February, the boards of REL and Religare Finvest Limited (RFL) approved a demerger, which will segregate the company’s financial services and insurance businesses into two independent listed entities.

This marks the first major restructuring announced by the company since the Burman family took control of REL in February 2025, the company said in its regulatory filing dated February 14.

Under the proposed scheme, REL will retain its stake in Care Health Insurance Limited (CHIL), which will continue as an insurance-focused entity. Meanwhile, the financial services business — comprising lending, broking, investment activities, and related support services — will be transferred to RFL on a going concern basis.

According to REL, the demerger is aimed at streamlining its business by separating financial services from insurance, thereby creating independent and focused entities that can attract different investor profiles suited to each sector.

The move is also expected to facilitate the separate listing of RFL, helping unlock shareholder value and enabling both entities to pursue distinct growth opportunities.

Additionally, the demerger will allow for more focused management attention, better alignment of employee performance with business outcomes, and improved ability to attract and retain sector-specific talent and resources.

As part of the arrangement, RFL will issue fully paid-up equity shares to REL shareholders on a 1:1 basis. Post-demerger, RFL’s shareholding pattern will mirror REL’s pre-demerger structure.

The company’s shares have been under severe pressure over the past five months, remaining in the red throughout and resulting in a cumulative decline of 25%.

However, the stock’s long-term performance remains intact, as it witnessed a sustained bull run between April 2020 and December 2024, rallying from ₹23.55 to ₹273 — a massive gain of 1,060%.

In terms of yearly performance, the stock has declined 18% in 2025 so far, snapping a six-year streak of gains.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments.

He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom.

During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles.

He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements.

His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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