Burmans' Rs 2,116-crore open offer for Religare gets tepid response

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Burmans' open offer of Rs 2,116 crore for the acquisition of additional 26 per cent stake in Religare Enterprises Ltd (REL) has received tepid response.

As per the data of open offer, against 90,042,541 shares (26 per cent), only 231,025 shares (0.07 per cent) were tendered.

The open offer for the acquisition of up to 9,00,42,541 fully paid-up equity shares of face value of Rs 10 each, representing 26 per cent of the expanded voting share capital of REL from the public shareholders by M B Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company commenced on January 27, 2025.

The open offer closed on February 13 and the date of payment of consideration was February 17, the data said.

The tender price for open offer was fixed at Rs 235 per share. Following the open offer, the shareholding of four entities would rise to 24.02 per cent.

Burmans, through four entities -- Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company -- collectively owned 20.15 per cent stake in REL.

The Burman family -- a promoter of Dabur India and other entities such as Eveready Industries -- through its entities, in September 2023 announced a Rs 2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company.

Subsequently, four entities in January 2024 bought a 3.6 per cent stake in diversified financial services group Religare Enterprises for Rs 277 crore through open market transactions.

The three entities -- Puran Associates, Vic Enterprises and M B Finmart -- of the Burman family acquired the shares of Religare Enterprises.

Puran Associates is owned by Anand Burman and Minnie Burman, while V C Burman owns Vic Enterprises. M B Finmart is owned by Mohit Burman.

Soon after the open offer bid, Burmans complained to capital market regulator Sebi for violation of insider trading rules by then chairperson Rashmi Saluja and appointment of board of her choice.

However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority.

Earlier this month, REL Executive Chairperson Saluja was ousted as director by the company's shareholders.

She ceased to be non-independent director with effect from February 7, 2025.