Burman Family Announces Open Offer To Buy 26% Stake Of Religare Enterprises For Rs 2,116 Crore; Stock Sheds 7%

NBFC, Religare Enterprises' share price nosedived over 7% on Monday after entities belonging to the Burman Family made an open offer to acquire an additional 26% stake in the company. The plan is to increase the stake in REL and take control of the company. The transaction is for a consideration of Rs 2,116 crore.

In a statement, it said, that entities belonging to the Burman family announced an open offer to the Public Shareholders of Religare Enterprises Limited ("REL") to acquire up to 26% of the Expanded Voting Share Capital of REL.

It said, "The Open Offer is made with the intention to increase the family's stake and take control of REL. The Open Offer will be conducted in accordance with the SEBI (SAST) Regulations."

Religare's share price touched an intraday low of Rs 252.40 apiece in early deals on Monday, nosediving by 7.4% from the previous session's closing price of Rs 272.45 apiece (September 22) on BSE.

Under the open offer, Burman Family-backed entities are acquiring 90,042,541 fully paid-up equity shares of face value of Rs 10 each from public shareholders. The floor price is set at Rs 235 per share, aggregating to Rs 2,116 crore.

Dr Anand C Burman, Chairman Emeritus, Dabur India Limited, said: "The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services. We are convinced that REL is the right platform and positioned for sustained success. With our guidance, REL will continue its journey to being one of India's distinguished financial services platforms."

Currently, the Burman Family is the single-largest shareholder in REL with a 21% stake that it holds through M.B. Finmart Private Limited, Puran Associates Private Limited, VIC Enterprises Private Limited, and Milky Investment & Trading Company.

The completion of the Open Offer is subject to receipt of statutory approvals required, to be set out in the detailed public statement and the letter of offer that are proposed to be issued in accordance with the SEBI (SAST) Regulations.

JM Financial Limited acted as the exclusive financial advisor to the Acquirers and shall act as the Manager of the Open Offer. TT&A and Anagram Partners acted as legal advisors.