Religare Fracas: Supreme Court Extends Burman Family's Open Offer Till Feb 12

The Supreme Court on Friday extended the Burman family's open offer for an additional stake in Religare Enterprises Ltd. to February 12.

In addition, the top court directed US-based investor Danny Gaekwad to deposit Rs 600 crore in terms of its competing offer against the Burman family's open offer on or before February 12.

The public offer, which is to close today, is to continue till the 12th of February, and in case the Rs 600 crore is deposited by Gaekwad, then the extension must continue till the the market regulator takes its decision on Gaekwad's competing offer, the top court said.

However, the top court also stated that if Gaekwad doesn't deposit the amount before the February 12, then this order shall automatically stand vacated.

The Religare dispute involves a battle for control between the Burman family, Rashmi Saluja, and Danny Gaekwad, marked by competing offers, courtroom battles, and corporate governance concerns.

The Burman family is seeking to increase its stake in the company. The family had made an open offer to buy Religare shares at Rs 235 per share through certain entities, and following this open offer, the Burman family's stake in Religare will be 53.94%.

Crucially, Danny Gaekwad, a US-based investor, has made a competing offer of Rs 275 per share for a 26% stake, which is 17% higher than the Burman family's offer of Rs 235 per share. This offer has been rejected for want of regulatory approvals and requirements. However, Gaekwad has made another application to the market regulator seeking approval on his offer.

In addition, the Burman family, which is the largest shareholder in the company, has been seeking to oust Rashmi Saluja, raising questions about the future leadership and control of Religare.

Rashmi Saluja is slated to retire by rotation at the scheduled annual general meeting on February 7. As the only non-independent director, her position requires re-appointment at each AGM. Saluja's main ask is that Religare should be prevented from voting or implementing the resolution to oust her from the board.

Recently, the Madhya Pradesh High Court and the Delhi High Court refused to halt Religare Enterprises' annual general meeting.