The Burman Family’s open offer to acquire majority stake in Religare Enterprises (REL) received bids for only 0.26% of the book size of 90 million shares. Public shareholders representing the Burman family — M B Finmart, Puran Associates, VIC Enterprises and Milky Investment & Trading Company — had launched the open offer on January 27. It closed on February 13.
According to BSE data, only 231,000 shares were tendered for acquisition by its shareholders at Rs 235.
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On the day the open offer announcement was made on September 25, 2023 by the Burmans, Religare Enterprises stock slumped 7.08%. Between September 25, 2023 and February 14, 2025, it has hit a low of Rs 205.30 on May 30, 2024 and a high of Rs 308.45 on December 23, 2024. On Friday, it ended day at Rs 236.05, down 1.49%.
The open offer period was revised after Supreme Court granted exemptions to Florida-based businessman Digvijay (Danny) Gaekwad for his competing bid to acquire 55% of the company for Rs 275 – a 17% premium to Burmans’ offer price.
Danny’s offer frivolous: SEBI
On Friday, the Securities and Exchange Board of India (SEBI) issued an order, calling Danny’s attempt to acquire majority stake in Religare Enterprises ‘frivolous’ as he failed to deposit an earnest amount of Rs 600 crore after having received two exemptions from the Supreme Court.
“The applicant has failed to demonstrate his ability to meet the financial obligation for making the competing open offer,” the SEBI order said.
Gaekwad’s attempt aimed solely at hindering the open offer process, added SEBI. The order also revealed that he failed to attend a personal hearing after rescheduling it from February 12-14.
The order stated ‘applicant requested for a virtual hearing at a suitable time considering time zone difference. But he failed to attend the hearing this morning, even though the web link for virtual hearing was sent to him on February 13, 2025 at 12:35 IST’.
“However, Uday S Patil, executive director, and Nipun Lodha, director, of the applicant’s merchant banker, PL Capital Markets, was present before me (Ashwini Bhatia, whole time director of SEBI) in person for the hearing.”
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