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Presently the distribution of financial products businesses of IIFL Wealth Management are carried on under three wholly owned subsidiaries viz. IIFL Wealth Capital Markets (“IWCML”) and IIFL Wealth Prime (“IWPL”) and IIFL Wealth Distribution Services (“IWDSL”).
With a view to consolidate the above distribution businesses under a single wholly owned subsidiary, it is proposed to demerge the distribution business from IWPL and IWCML to IWDSL.
In this regard, the Boards of IWCML and IWPL and IWDSL have approved the above demerger and consolidation of distribution business through a composite scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013 (“Scheme”).
Pursuant to this scheme, IWCML will stand merged with IWPL.
The appointed date for the Scheme is 1 April 2021 and the scheme is subject to necessary statutory and regulatory approvals.
Since the proposed consolidation is between the wholly owned subsidiaries, there will not be any change in the capital structure and net worth of IIFL Wealth Management. IWPL & IWDSL will continue as wholly owned subsidiaries of IIFL Wealth Management distinctly focused on NBFC and distribution businesses respectively.
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