Court stays Religare AGM, RBI’s nod for open offer

In a setback to the Burman family, the Madhya Pradesh High Court has stayed the approval granted by the Reserve Bank of India (RBI) for making an open offer to acquire an additional 26% stake in Religare Enterprises as well as the company’s annual general meeting (AGM) scheduled for December 31.

Earlier this month, RBI approved the open offer of the Burman family, which currently holds a 25% stake in Religare through its four entities, to acquire an additional 26%, potentially gaining majority control of the NBFC.

Also ReadReliance Power arm gets interim relief from HC against SECI order

The AGM gains importance as Religare chairperson Rashmi Saluja is up for reappointment, which had already been pushed to December from September. The Burmans, proxy firm InGovern, as well as certain institutional investors have called for voting Saluja out against her fresh five-year term for on the Religare board.

“Till further orders, the notice dated December 9, 2024 (RBI approval) and the Annual General Body Meeting of Respondent No. 7 (Religare Enterprises) which is scheduled to be held on December 31, 2024 shall remained stayed,” Madhya Pradesh High Court said in its order.

The matter will be next heard after four weeks, tentatively on January 17.

The order passed by a division bench of chief justice Suresh Kumar Kait and justice Vivek Jain was in response to a public interest litigation filed by Madhya Pradesh-based advocate Vijayant Mishra, representing the interest of Religare’s minority shareholders.

Mishra’s plea said if the open offer goes through and the four companies consolidate as per RBI’s condition, the control will fall in the hands of only 399 persons, affecting the shareholding of 73,263 persons who hold up to Rs 2 lakh worth of shares in Religare.

Also ReadEatSure becomes first platform to launch multi-restaurant ordering

He has requested the court to set up an independent commission of enquiry to oversee and monitor the proposed acquisition of Religare to protect the minority shareholders’ interest.

This court order further elongates the dispute between the Religare management and the Burmans, spanning over one-and-a-half years now. It started in September last year when the Burmans had announced acquiring additional stake in the NBFC through a Rs 2,116-crore open offer. The offer was contested by the Religare management,

 » Read More

Related Articles

5 Equity Mutual Funds with rising cash holdings amid market volatility

The Indian equity market has witnessed growing turbulence, with steep fluctuations in benchmark indices and sectoral fluctuations. They include persistent geopolitical uncertainty, rising crude oil prices, heavy selling by FIIs and fear of global recession that have created a questionable investment environment. Given the challenging conditions, some mutual fund managers have taken a cautious approach

Parliamentary panel to review stakeholder comments on new I-T Bill

The Central Board of Direct Taxes (CBDT) on Tuesday asked stakeholders to continue submitting their suggestions on the new Income Tax Bill, 2025, which will be compiled and sent to a select committee of Parliament for review. In a release, the CBDT said an effort is underway to collect inputs and work on simplification of

Market recovery or false dawn? Experts debate sustainability

After a 14% correction since September end, benchmark indices have recorded around 2% gains in the past two trading sessions. The broader indices, which had fallen up to 24% from their peak levels, also gained around 3%, providing much-needed relief to investors. However, the key question remains: Will this recovery sustain? Experts are divided. While

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

5 Equity Mutual Funds with rising cash holdings amid market volatility

The Indian equity market has witnessed growing turbulence, with steep fluctuations in benchmark indices and sectoral fluctuations. They include persistent geopolitical uncertainty, rising crude oil prices, heavy selling by FIIs and fear of global recession that have created a questionable investment environment. Given the challenging conditions, some mutual fund managers have taken a cautious approach

Parliamentary panel to review stakeholder comments on new I-T Bill

The Central Board of Direct Taxes (CBDT) on Tuesday asked stakeholders to continue submitting their suggestions on the new Income Tax Bill, 2025, which will be compiled and sent to a select committee of Parliament for review. In a release, the CBDT said an effort is underway to collect inputs and work on simplification of

Market recovery or false dawn? Experts debate sustainability

After a 14% correction since September end, benchmark indices have recorded around 2% gains in the past two trading sessions. The broader indices, which had fallen up to 24% from their peak levels, also gained around 3%, providing much-needed relief to investors. However, the key question remains: Will this recovery sustain? Experts are divided. While

Bajaj Finserv to explore listing of insurance firms

After acquiring Allianz’s 26% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for Rs 24,180 crore, Bajaj Finserv is planning to explore listing of its insurance ventures. Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said there was a regulatory nudge for listing of larger insurance companies. The boards of the

Price collusion: CCI raids ad giants, broadcasters’ body

The Competition Commission of India (CCI) on Tuesday raided the offices of media agencies, including GroupM, Dentsu and IPG Mediabrands, as well as the Indian Broadcasting and Digital Foundation (IBDF), an apex body of broadcasters, over alleged fixing of ad rates and discounts, industry sources told FE. The action comes ahead of the 18th edition