Diversified group Religare Enterprises Ltd on Tuesday said it has got approval of the National Company Law Tribunal (NCLT) to merge 11 of its entities with itself.
Religare Enterprises had in December last year informed NCLT about the said merger in order to achieve better synergy and to simplify its corporate structuring.
“NCLT vide its order dated December 8, 2017 has approved the scheme of arrangement/amalgamation between Religare Securities (transferor company 1), Religare Commodity Broking (transferor company 2), RGAM Investment Advisers (transferor company 3)…Religare Capital Markets (India) Ltd (transferor company 11) (collectively referred to as ‘Transferor Companies’) Religare Broking Ltd (resulting company) and Religare Enterprises Ltd (transferee company),” Religare Enterprises said in a regulatory filing.
The rest of the entities to be merged into Religare Enterprises are Religare Venture Capital, Religare Arts Investment Management, Religare Capital Finance, RGAM Capital India, Religare Investment Advisors, Religare Support Services and Religare Arts Initiative.
The merger order will be filed by transferor/transferee/resulting companions with the Registrar of Companies in the due course of time, Religare Enterprises added.
According to Religare Enterprises, the amalgamation is in continuation of the steps it has taken over the past to consolidate its portfolio of businesses and maintain a conscious 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,” it had said in a filing in December 2016.
Religare Enterprises hopes that this 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. On Tuesday, shares of the company closed 3.07% down at Rs60 on BSE.
Source: Mint