The Burman family’s open offer to acquire an additional 26% stake in Religare Enterprises has received approval from the Securities and Exchange Board of India (SEBI), according to a report.
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This marks the final clearance for Religare’s largest shareholder to go ahead with its offer and gain majority control of the non-banking financial company (NBFC). This follows prior approvals from Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (Irdai), Competition Commission of India (CCI), and stock exchanges.
The Burmans are expected to announce their offer in the next few days, with a target launch in mid-January, the report said.
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In September last year, the Burman family, who currently holds a 25% stake in Religare, announced their plan to acquire an additional 26% stake for Rs 2,116 crore.
However, the open offer had faced resistance from the management, which had raised concerns over the “fit and proper” credentials of the Burman family and questioned the offer price.
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In the RBI’s approval earlier this month, the central bank has directed the Burman family to submit a concrete consolidation plan, and approval to complete the acquisition within one year. RBI had also rejected the acquirer’s proposal to appoint new directors, including Arjun Lamba, Abhay Agarwal, Ramanathan Gurumurthy, and Suresh Mahalingam.
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