New Delhi, Feb. 23 -- On 14 February, the boards of Religare Enterprises Ltd (REL) and Religare Finvest Ltd (RFL) approved a demerger of its insurance and financial services businesses into two separate listed entities.

REL will retain control of Care Health Insurance, while lending, broking, investment, and ancillary activities would be transferred to RFL.







Even though the demerger promises the unlocking of shareholder value, investors were not impressed. REL has corrected by 9% since 14 February, bringing the stock close to its support at Rs.220 apiece. Despite five years of multibagger returns which tripled investor wealth, the stock is still trading below its listing price.

Let's dive into what has been weighing on sentiment, ...