Demerger: Crest Ventures shares jump 16% after demerger approval of financial services biz.

SYNOPSIS: Crest Ventures approved the demerger of its financial services business into Crest Capital and Investment, aiming to unlock value, sharpen strategic focus, and list the resulting entity on stock exchanges.

During Friday’s trading session, shares of a company involved in the business of real estate and related services, financial services, investment and credit surged more than 16 percent on BSE, after the company’s Board approved the demerger of its financial services business.

At 12:01 p.m., the shares of Crest Ventures Limited were trading in the green at Rs. 387.65 on BSE, up by around 7.3 percent, as against its previous closing price of Rs. 361.25, with a market cap of Rs. 1,103 crores. The stock has delivered negative returns of more than 13 percent in one year, but has gained by about 10 percent in the last one month.

What’s the News:

According to the latest disclosures on the stock exchanges, the Board of Directors of Crest Ventures Limited, at its meeting held on 18th December 2025, approved a proposal to demerge its financial services business as part of a broader corporate restructuring exercise.

Under the proposed scheme of arrangement, the financial services undertaking will be separated from Crest Ventures Limited (the demerged entity) and transferred to a separate company called Crest Capital and Investment Limited (CCIL), which will operate as the resulting company following the demerger.

The demerged undertaking will comprise the entire financial services business, including all related assets, liabilities, contracts, employees, operations, and properties, irrespective of their nature or location, as defined under the scheme.

The company stated that the demerger is being undertaken to sharpen strategic focus. Crest Ventures currently operates as a diversified group with interests across multiple businesses, of which financial services is one. Management believes that the financial services segment requires a distinct growth strategy aligned with sector-specific risks, regulatory dynamics, and competitive intensity.

The company further noted that the financial services business caters to a different investor and stakeholder profile compared with its other operations. Managing it as a standalone entity is expected to improve risk management, attract sector-focused investors and strategic partners, and allow for more targeted capital allocation.

According to the company, the proposed demerger is expected to deliver multiple benefits. These include enabling exclusive focus on financial services growth opportunities, simplifying the overall group structure, improving operational clarity, providing greater flexibility for investors, and unlocking value for shareholders of Crest Ventures.

Once the scheme becomes effective, Crest Capital and Investment Limited will issue fully paid-up equity shares to eligible shareholders of Crest Ventures in accordance with the prescribed share entitlement ratio. Simultaneously, the existing equity shares of CCIL held by Crest Ventures will be cancelled and extinguished without any consideration, as stipulated under the scheme.

Under the share entitlement structure, shareholders of Crest Ventures will receive 1 fully paid-up equity share of Rs. 10 each in CCIL for every 2 fully paid-up equity shares of Rs. 10 each held in Crest Ventures. This is a 1:2 share entitlement ratio.

Following completion of the demerger and receipt of all necessary statutory and regulatory approvals, CCIL is proposed to be listed on both the stock exchanges, BSE and NSE.

Financials & More:

Crest Ventures reported a decline in revenue from operations, experiencing a year-on-year decrease of around 17 percent, from Rs. 35.4 crores in Q2 FY25 to Rs. 29.5 crores in Q2 FY26.

Likewise, the company’s net profit decreased during the same period from Rs. 17.89 crores to Rs. 3.74 crores, representing a fall of nearly 79 percent YoY.

Headquartered in Mumbai, Crest Ventures Limited is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). It operates a diversified business model spanning three key verticals: Financial Services, Investments and Real Estate.

Its investment and credit portfolio covers early-stage and mature businesses across private and public markets. Within Financial Services, the company has exposure across segments such as investment banking, share registry services, equity brokerage, retail distribution of financial products, fixed income and derivatives through joint ventures and partnerships with global industry leaders.

In the Real Estate segment, Crest Ventures focuses on developing high-quality residential and commercial assets with an emphasis on design, planning and execution.

Written by Shivani Singh

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