Burman Family Increases Stake in Religare Enterprises to Over 30%

Burman Family Increases Stake in Religare Enterprises Limited

The Burman family has significantly 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.

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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.

Share Price Performance

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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.