The Securities and Alternate Board of India (SEBI) has rejected the competing open provide from US-based Danny Gaekwad Developments & Investments for the acquisition of a 26 p.c stake in Religare Enterprises Ltd (REL). The regulator acknowledged that the provide didn’t adjust to required laws.
In a communication to REL on January 28, SEBI clarified that the “letters submitted by Digvijay Laxmansinh Gaekwad” had been being returned, as they didn’t qualify as an exemption utility beneath Regulation 11 of the SEBI (SAST) Rules, 2011. The rejection referenced an electronic mail from January 25, 2025, which included a letter from Gaekwad’s entity, Danny Gaekwad Developments & Investments, primarily based in Florida.
Danny Gaekwad Developments & Investments had proposed buying a 26 p.c stake in Religare Enterprises at a value increased than the one supplied by the 4 Burman family-controlled entities. Gaekwad, a self-proclaimed globally acknowledged investor, supplied Rs 275 per share — 17 p.c greater than the Burmans’ provide of Rs 235 per share.
The Burman household’s open provide to accumulate an extra 26 p.c stake in REL commenced on January 27 following regulatory approval. The provide covers as much as 90,042,541 absolutely paid-up fairness shares, representing 26 p.c of REL’s expanded voting share capital. If permitted, the Burman household’s stake in REL will rise to 53.94 p.c.
The Burman entities concerned within the open provide embody Finmart Personal Ltd, Puran Associates Personal Ltd, VIC Enterprises Personal Ltd, and Milky Funding & Buying and selling Firm. As of September 30, 2024, these entities collectively owned 25.12 p.c of REL.
In September 2023, the Burman household — promoters of Dabur India and different firms like Eveready Industries — via its entities, introduced an open provide price Rs 2,116 crore to accumulate as much as a 26 p.c stake in REL.
Following the open provide, the Burmans raised a grievance with SEBI relating to insider buying and selling violations by the chairperson and her board appointments.
This was challenged by REL’s unbiased administrators, who flagged considerations about fraud and different alleged violations by the Burman household entities and reported the matter to regulators together with SEBI, RBI, and the Insurance coverage Regulatory and Improvement Authority.
(With inputs from PTI)
