Religare shares gain 4.6% after CCI approves Burman stake buy in company

Shares of Religare Enterprises rose 4.6 per cent on Wednesday after the Competition Commission of India (CCI) cleared a proposal by the Burman family to hike their stake in the financial services company. Four entities belonging to the group — Puran Associates, MB Finmart, VIC Enterprises, and Milky Investment & Trading Company — have obtained the anti-trust regulator’s nod to acquire 5.27 per cent stake in Religare through open market purchases and follow it up with an open offer to buy up to 26 per cent.

The entities controlled by the Burmans will now have to wait for approval from the market regulator Securities and Exchange Board of India (Sebi) to launch the open offer.

“We look forward to the continued support from Religare shareholders, and hope to complete the remaining regulatory approvals expeditiously so as to enable a smooth transition. We take this opportunity to urge the board to act in a neutral manner and not solely at the behest of certain members of the senior management,” said a spokesperson for the Burman Family.

In September 2023, the promoters of Dabur had made an offer to hike their stake in Religare by acquiring an additional stake for Rs 2,116 crore at Rs 235 per share.

Conflict had broken out between Religare’s board and the Burman family following their plan to augment their stake in the NBFC with both parties hurling accusations against each other.

Currently, The Burman family is the single-largest shareholder in Religare, with a 21.2 percent stake.

Shares of Religare last closed at Rs 227.