- By Vaamanaa Sethi
- Mon, 25 Sep 2023 10:31 AM (IST)
- Source:JND
Burman Family, which also holds a controlling stake in Dabur, announced on Monday an open offer for 26% stake in Religare Enterprises for up to Rs 2,116 crore. The open offer is made with the intention to increase the family’s stake and take control of REL.
Shares of Religare Enterprises plunged over 7% in early morning trade on Monday, September 25, after the announcement by Burman Family.
The Burman family, through its group entities, is currently the single largest shareholder in REL, and holds 21% stake through M.B. Finmart Private Limited, Puran Associates Private Limited, VIC Enterprises Private Limited, and Milky Investment & Trading Company. The open offer will be conducted in accordance with the SEBI (SAST) Regulations.
“The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services. We are convinced that REL is the right platform and positioned for sustained success. With our guidance, REL will continue its journey to being one of India’s distinguished financial services platforms.” said Anand C Burman, Chairman Emeritus, Dabur India Limited, in a statement.
As per company’s press release, the open offer to the public shareholders would be at a price of Rs 235.00 per equity share aggregating to a total consideration of Rs 2,116 crores assuming full acceptance of the open offer.
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“The Acquirers intend to take control of REL once the Open Offer is concluded in accordance with the provisions of the SEBI (SAST) Regulations. The Acquirers reserve the right during the interim period, pending completion of the Open Offer, to appoint directors to the board of directors of REL and take all measures to assume control of REL, subject to complying with the provisions of the SEBI (SAST) Regulations,” the company said in its release.
JM Financial Limited acted as the exclusive financial advisor to the Acquirers and shall act as the Manager to the Open Offer. TT&A and Anagram Partners acted as legal advisors.
