The Burman Group announced on February 20 that it has taken control of Religare Enterprises Limited (REL) and has been officially designated as its promoter.
The Burman Group emphasised that its immediate priority is to ensure stability, enhance governance, and drive sustainable growth within the company.
“Governance, trust, and integrity will remain at the core of our vision as we guide REL toward a future marked by resilience and maximized stakeholder value,” according to an official media release.
The group’s open offer of Rs 2,116 crore to acquire an additional 26% stake in REL saw a lukewarm response. According to open offer data, only 231,025 shares (0.07%) were tendered against the targeted 90,042,541 shares (26%).
Following the open offer and acquisitions, the Burman Group now holds 83,201,819 equity shares, representing 25.16% of REL’s outstanding paid-up share capital.
The group stated that it will collaborate with REL’s leadership and board to strengthen the company’s strategic direction and enhance long-term value creation.
“We have always invested in businesses with strong fundamentals and high growth potential, applying a disciplined approach with the highest standards of governance. This was our intent in launching the open offer for control, and we remain committed to that,” the spokesperson said.
Prior to this, the Burmans, through four entities—Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company—collectively held a 20.15% stake in REL.
The Burman family, which also promotes Dabur India and companies such as Eveready Industries, announced a Rs 2,116-crore open offer in September 2023 to acquire up to 26% of REL.
In January 2024, four Burman entities acquired an additional 3.6% stake in the diversified financial services group for Rs 277 crore via open market transactions. Puran Associates, VIC Enterprises, and M B Finmart were among the entities that acquired shares.
Puran Associates is owned by Anand Burman and Minnie Burman, while VIC Enterprises is controlled by V C Burman. M B Finmart is owned by Mohit Burman.
Following the open offer bid, the Burmans lodged a complaint with the Securities and Exchange Board of India (SEBI), alleging insider trading violations by then-chairperson Rashmi Saluja and accusing her of appointing board members of her choice.
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