The Reserve Bank of India has approved the Burman family's open offer to acquire a 26% stake in Religare Enterprises Ltd., a move that could resolve the ongoing control tussle over the non-banking financial company. This approval comes after the Burman family's recent increase in stake, which had previously brought their holding close to 25%.
In a filing with the exchanges, Religare Enterprises confirmed receiving the approval from the RBI, stating that the central bank's letter, dated Dec. 9, 2024, grants the go-ahead for the proposed increase in shareholding by existing shareholders, including Puran Associates Pvt., VIC Enterprises Pvt., MB Finmart Pvt., and Milky Investment & Trading Co.
The approval is contingent upon several conditions. The acquirers are required to consolidate the Burman and Religare groups by March 31, 2026, and submit a detailed consolidation plan within 90 days.
The RBI has also outlined provisions related to regulatory compliance, including adherence to the Master Direction for Core Investment Companies, and other relevant statutes.
As part of the transaction, the Burman family, through its entities, placed orders to acquire up to 1.73 crore equity shares, representing 5.27% of Religare's equity, at a maximum price of Rs 235 per share.
This move is part of their strategy to surpass the 25% threshold, triggering an open offer obligation as required by regulations governing NBFCs.
While the RBI has given approval for the increase in shareholding, it has withheld approval for the proposed appointment of four new directors at this stage.
The company is required to submit additional details on these appointments once they ensure the nominees meet the "fit and proper" criteria.
This approval by the RBI marks a crucial step in the Burman family's efforts to solidify its position in Religare, potentially resolving the ongoing management and control disputes at the NBFC.
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