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Religare was undervalued; my offer benefits shareholders: Gaekwad

We have full faith in Sebi, Modi government, Gaekwad said

Danny Gaekwad

Digvijay Gaekwad

Dev Chatterjee

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Digvijay ‘Danny’ Gaekwad, a US-based serial entrepreneur, has written to the Securities and Exchange Board of India (Sebi) seeking permission to make a counteroffer for Religare Enterprises at Rs 275 per share to acquire 55 per cent of the company. In an interview with Dev Chatterjee from Florida, Gaekwad explains the rationale behind his offer for the financial services company. Edited excerpts:
 
What made you make a counteroffer for Religare Enterprises at Rs 275 per share?
 
I believe in the fundamentals of Religare’s business. We evaluate business opportunities on an ongoing basis worldwide. My offer is beneficial for all the company’s shareholders, and they should support it. I think the company was undervalued, which is why I made the offer.
 
 
Why did you write to Sebi? Why didn’t you appoint a merchant banker for the offer?
 
We have full faith in Sebi and the Indian government, led by Prime Minister Narendra Modi’s Make in India campaign. I am confident they will review our proposal with an open mind and keep all shareholders’ interests in mind.
 
At this price, my offer provides greater value to the shareholders. We have already appointed a merchant banker. We will demonstrate to Sebi that we have the funds to make the counteroffer.
 
You are an investor in the US and other parts of the world. Is Religare your first investment in India?
 
We look for opportunities globally. In the past, we have evaluated many companies in India, but the asking prices and price-to-earnings ratios are very high here. Companies are demanding inflated valuations. However, we think Religare is a good opportunity for us.
 
What’s your take on the Burman family’s statement on Sunday accusing Religare’s management of being reckless?
 
I have used Dabur products all my life, and we have nothing against anyone. If a company is reckless, its value will drop from a thousand to zero. If REL management would have been reckless then it's value would fall to zero. I am not doing any charity. I am investing in a business and I am offering Rs 275 a share in cash. I think the company has a good future.
 

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First Published: Jan 26 2025 | 10:58 PM IST

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