Burmans' Religare Enterprises' open offer to acquire an additional 26 per cent stake from the open market would commence on January 27 following the regulatory approvals
A day ahead of open offer, Religare Enterprises Ltd (REL) on Sunday said a US-based investor Danny Gaekwad Developments & Investments has made a proposal to pick up 26 per cent stake in the financial services firm at a higher price than offered by entities promoted by the Burman family.
In a letter written to the Sebi Chairperson, posted by REL, Danny Gaekwad Developments & Investments has requested the regulator to permit the US-based entity to submit a competing open offer.
Digvijay Laxmansinh Gaekwad, who claimed to be a globally recognised investor, has offered to pay a 17 per cent higher price of Rs 275 per share of REL as against open offer price bid of Rs 235 per equity.
Burmans' Religare Enterprises' open offer to acquire an additional 26 per cent stake from the open market would commence on January 27 following the regulatory approvals.
The open offer is for the acquisition of up to 9,00,42,541 fully paid-up equity shares of face value of Rs 10 each, representing 26 per cent of the expanded voting share capital of REL from the public shareholders.
Finmart Private Ltd, Puran Associates Private Ltd, VIC Enterprises Private Ltd and Milky Investment & Trading Company.
Following the open offer, Burman's stake in REL would rise to 53.94 per cent, while Digvijay Laxmansinh Gaekwad proposes to pick 55 per cent stake in the company.
Last month, the Reserve Bank approved the open offer of the Burman family -- the promoters of FMCG major Dabur -- to acquire an additional 26 per cent stake in NBFC firm Religare Enterprises Ltd (REL).
As of September 30, 2024, Burmans, through its four entities, collectively owns a 25.12 per cent stake in REL.
The Burman family -- a promoter of Dabur India and other entities such as Eveready Industries -- through its entities, in September 2023 announced a Rs 2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company.
Soon after the open offer bid, Burmans complained to capital market regulator Sebi for violation of insider trading rules by the chairperson and appointment of board of her choice.
However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority.