Burmans Religare Enterprises Launches Open Offer to Acquire Additional 26% Stake in REL Starting January 27

The Burman family's open offer to acquire an additional 26% stake in Religare Enterprises Ltd (REL) is set to begin on January 27, following regulatory approvals. This move comes after the Reserve Bank's approval last month. The Burmans, known for their association with FMCG giant Dabur, aim to increase their stake in the non-banking financial company.

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Currently, the Burmans hold a 25.12% stake in REL through four entities. These entities include M.B. Finmart Private Ltd, Puran Associates Private Ltd, VIC Enterprises Private Ltd, and Milky Investment & Trading Company. The open offer targets acquiring up to 9,00,42,541 fully paid-up equity shares, each with a face value of Rs 10.

Open Offer Details and Timeline

The open offer represents 26% of the expanded voting share capital of REL. According to the tentative schedule, the offer will close on February 7. This strategic move by the Burman family was announced in September 2023 as part of a Rs 2,116-crore proposal to REL shareholders.

Despite this initiative, REL's independent directors have raised concerns. They allege fraud and other breaches by the Burman family entities and have approached regulators like SEBI, RBI, and the Insurance Regulatory and Development Authority for intervention.

The Burman family is not only associated with Dabur India but also with other entities such as Eveready Industries. Their decision to increase their stake in REL reflects their ongoing interest in expanding their influence within the financial sector.

This acquisition attempt highlights the Burmans' strategic approach to consolidating their position in REL. As stakeholders await further developments, the outcome of this open offer will be closely monitored by market participants and regulators alike.