Burman Family Acquires Control Of Religare Enterprises

The Burman Group has acquired control of Religare Enterprises, following a prolonged tussle that involved the financial services firm's ousted chairperson Rashmi Saluja and the US-based investor Danny Gaekwad.

"We are pleased to announce that we have acquired control of Religare Enterprises Limited (REL) and been designated as its promoters," the Burman family said in a statement.

"Our immediate priority is to instil stability, strengthen governance, and drive sustainable growth at the company," it added.

The Burman family, which controls fast-moving consumer goods major Dabur India Ltd., was seen as the front-runner to acquire Religare after it first sought to increase its stake in the company in September 2023.

The family eventually made an open offer to buy additional 26% stake in Religare at Rs 235 per share through its entities. Following this open offer worth Rs 2,116 crore, its stake in the company was set to increase to 53.94%.

The open offer faced last-mile hurdle when Danny Gaekwad, a US-based investor, made a competing offer of Rs 275 per share for a 26% stake, which was 17% higher than the Burman family's offer of Rs 235 per share. This offer, however, was rejected for want of regulatory approvals and requirements.

With the control of Religare acquired, the Burman family will work with the company's leadership and board to reinforce its strategic direction and enhance long-term value creation, according to a spokesperson of the group.

"We have always invested in businesses with strong fundamentals and high growth potential, and we will apply the same disciplined approach to REL with the highest levels of governance. This was the intent with which we launched our open offer for control and we remain committed to that," the spokesperson said.

The latest development comes around 10 days after Saluja was ousted from Religare as shareholders rejected a proposal to re-appoint her as the executive chairperson. As per voting results uploaded by the company, nearly 98% of votes came against Saluja's return.

Saluja, widely credited for the turnaround of Religare, was the only non-independent director on the company's board. She had approached the Delhi High Court to safeguard herself from the impending board ouster, but failed to receive a ruling in her favour.

After her exit, Praveen Kumar Tripathi, a non-executive independent director, was appointed as chairperson of Religare.