Arihant Capital announces major group restructuring and relocation

On August 26, 2025, Arihant Capital Markets Limited (ACML) approved a draft Composite Scheme of Arrangement. This includes the amalgamation of Arihant Financial Services Limited (AFSL) into ACML, the demerger of ACML's Demerged Undertaking into Arihant Elite Financial Solutions Limited (AEFSL), and subsequent transfers of Merchant Banking and Distribution businesses from AEFSL to Arihant Investment Banking Services Limited (AIBSL) and Arihant Money Marvel Wealth Management Limited (AMMWML), respectively. Shareholders of ACML will receive one equity share of AEFSL for every one equity share held in ACML.

The restructuring is designed to achieve business segregation for focused growth, create two listed entities (ACML for Retail Broking and AEFSL for NBFC), enhance value and shareholder choice, and improve transparency and governance. As of June 30, 2025, AFSL had a net worth of INR 11.27 crores and ACML had a net worth of INR 361.89 crores. The turnover for the Demerged Undertaking (Merchant Banking and Distribution) for the year ended March 31, 2025, was INR 7.65 crores, representing 2.18% of ACML's total standalone turnover.

The scheme also stipulates that consideration for the transfer of the Merchant Banking Business is INR 5.98 crores, and for the Distribution Business, it is INR 0.57 crores. AEFSL, the resulting entity, is proposed to be listed on BSE Limited and the National Stock Exchange of India Limited, subject to regulatory approvals. The board also approved the shifting of the company's registered office within Indore.