Burmans Religare will commence an open offer on January 27th to acquire an additional 26% stake
Burmans Religare Enterprises will begin an open offer to acquire an additional 26% stake from the open market on January 27, pending regulatory approvals.
Last month, the Reserve Bank approved the open offer by the Burman family, who are the promoters of FMCG major Dabur, to acquire an additional 26% stake in NBFC firm Religare Enterprises Ltd (REL). The open offer is for the acquisition of up to 9,00,42,541 fully paid-up equity shares with a face value of Rs 10 each, representing 26% of the expanded voting share capital of REL from public shareholders by M.B. Finmart Private Ltd, Puran Associates Private Ltd, VIC Enterprises Private Ltd, and Milky Investment & Trading Company, according to a regulatory filing.
The open offer is scheduled to close on February 7.
As of September 30, 2024, Burmans collectively own a 25.12% stake in REL through their four entities. In September 2023, the Burman family, who are promoters of Dabur India and other entities like Eveready Industries, announced a Rs 2,116-crore open offer to REL shareholders to acquire up to a 26% stake in the company. However, this offer was contested by REL independent directors, who raised concerns about fraud and other breaches by Burman family entities. They approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.