Some corporate breakups don’t sting—they shine. Across the globe and in India, several demergers have not only unlocked hidden value but also delivered astonishing returns to shareholders.
Conglomerates often juggle diverse businesses under one umbrella. Reliance runs telecom, retail, and energy, while Tata Motors operates both commercial and passenger vehicles. But such diversity can dilute management focus and invite a “holding company discount,” where markets value the whole at less than the sum of its parts.
By spinning off individual businesses, companies remove this discount, sharpen capital allocation, and enable leadership teams to pursue growth with greater autonomy. If the business fundamentals are strong and execution disciplined, demergers often lead to wealth creation.
Here are three Indian examples where corporate breakups made investors smile.
Nuvama Wealth: From Edelweiss Spin-Off to Wealth Management Giant
Demerger Date: 2023
Listing Price: ₹2,750 (Sep 2023)
High: ₹8,508 (Jun 2025) | Current: ₹6,789
Nuvama Wealth emerged from Edelweiss Financial Services in 2023, with a vision to build a dedicated wealth management powerhouse. The market loved the idea: shares tripled in less than two years before cooling off slightly.
Key drivers included:
- Assets under management (AUM) at ₹4.3 lakh crore by FY25, with wealth management contributing ₹2.9 lakh crore.
- FY25 revenue up 41% YoY to ₹2,901 crore; profit after tax surged 57.6% to ₹985 crore.
- Return on Equity expanded to 31.5%, reflecting strong operating leverage.
With India’s wealth management sector expected to triple in the coming years, Nuvama is investing in expansion beyond metros and ramping up talent acquisition to capture growth.
IIFL Wealth to 360 One: A Fivefold Journey
Demerger Date: 2019
Listing Price: ₹248.5 (Sep 2019)
High: ₹1,310 (Jan 2025) | Current: ₹1,100
IIFL Finance separated its wealth arm in 2019, listing it as India’s first standalone wealth management firm. Renamed 360 One WAM in 2023, the company’s growth has been remarkable:
- AUM grew from ₹2.1 lakh crore (FY21) to ₹5.8 lakh crore (FY25), a 24% CAGR.
- Annual recurring revenue (ARR) AUM hit ₹2.4 lakh crore, growing at 27% CAGR, providing predictable cash flows.
- Operating revenue rose to ₹2,446 crore in FY25, with ARR now contributing 70%.
- PAT nearly tripled from ₹369 crore to ₹1,015 crore in four years, with RoE at 20.7%.
360 One has also expanded through acquisitions like B&K Securities and ET Money, diversifying beyond wealth management into fintech and capital markets.
Suven Pharma to Cohance LifeSciences: The Advent-Fueled Transformation
Demerger Date: 2020
Listing Price: ₹156 (Mar 2020)
High: ₹1,360 (Dec 2024) | Current: ₹902
Suven Life Sciences demerged its CRAMS business into Suven Pharmaceuticals in 2020. Global private equity giant Advent International soon acquired a controlling stake, merged it with Cohance LifeSciences in 2025, and created a diversified pharma services giant.
The results speak for themselves:
- Revenue tripled from ₹834 crore (FY20) to ₹2,608 crore (FY25).
- PAT grew 53% to ₹484 crore in the same period.
- The merged entity now targets ₹6,000 crore revenue by FY29 through innovation, scale, and new client wins.
Advent’s involvement provided both capital strength and strategic clarity, turning Suven-Cohance into a key player in India’s CDMO sector.
The Bigger Picture: Why Demergers Matter
Stories like Nuvama, 360 One, and Cohance highlight how corporate breakups can unlock hidden potential. Independence often brings sharper strategy, better capital efficiency, and faster growth—all ingredients for wealth creation.
The trend continues. Reliance may soon list Jio and Retail separately; Tata Motors is splitting its passenger and commercial vehicles; and HUL plans to hive off Kwality Wall’s. More spinoffs are in the pipeline, offering fertile ground for investors seeking the next big multibagger.
Because sometimes, separation—not synergy—delivers the sweetest success.
Feel free to share your experiences and insights in the comments below. Let’s continue the conversation and grow together as a community of traders and analysts.
By sharing this experience and insights, I hope to contribute to the collective knowledge of our professional community, encouraging a culture of strategic thinking and informed decision-making.
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Disclaimer
This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.