Mumbai: A New Chapter in Religare Enterprises' Ownership Battle

Religare Enterprises has recently made headlines by informing the stock exchanges about a significant development. The company received a letter from US investor Digvijay Gaekwad of Danny Gaekwad Developments & Investments Florida, dated January 24, 2025. This letter, addressed to the SEBI chairperson, introduces a competing open offer for Religare Enterprises (REL), challenging the existing offer from the Burmans.

Gaekwad's offer proposes acquiring 26% of REL's outstanding share capital at Rs 275 per equity share, which is a 17% premium over the Rs 235 offered by the Burmans. The payment method is cash, and the tendering period will coincide with the Burmans' schedule. Gaekwad criticizes the Burmans' offer for its lack of clarity on RBI-mandated conditions, such as the consolidation of non-banking financial companies (NBFCs) within the Burman and Religare groups.

He further alleges that the Burmans' offer price is significantly lower than REL's recent market prices and that their letter of offer misleads public shareholders about the unconditional RBI approval. Gaekwad emphasizes his group's capability to provide focused attention and capital infusion, highlighting the absence of competing NBFCs in their portfolio.

Request for SEBI's Intervention

In his letter, Gaekwad requests SEBI to hold the tendering period for the Burmans' offer in abeyance, allowing public shareholders to evaluate both offers simultaneously. He seeks exemptions under SEBI’s takeover regulations to facilitate this counteroffer, aiming to protect the interests of REL's public shareholders.

With SEBI's nod for Burmans' open offer on December 20, 2024, Gaekwad plans to issue a public announcement under SEBI regulations within seven days of receiving approval to proceed with his competing offer. This move could potentially reshape the ownership landscape of Religare Enterprises, offering shareholders a more lucrative exit opportunity.