Religare Enterprises Ltd. saw its share price surge by 9.41% after the Burman Group announced it had acquired control of the financial services firm. This acquisition follows a prolonged tussle involving the company's ousted chairperson Rashmi Saluja and US-based investor Danny Gaekwad.
The Burman family, which controls Dabur India Ltd., expressed their satisfaction with the acquisition, stating, “We are pleased to announce that we have acquired control of Religare Enterprises Ltd. and been designated as its promoters. Our immediate priority is to instil stability, strengthen governance, and drive sustainable growth at the company.”
The Burman Group emerged as the front-runner to acquire Religare after initially seeking to increase its stake in September 2023. The family made an open offer to buy an additional 26% stake in Religare at Rs 235 per share, amounting to Rs 2,116 crore. This move was set to increase their stake in the company to 53.94%.
However, the acquisition faced a last-minute challenge when Danny Gaekwad made a competing offer of Rs 275 per share for a 26% stake, which was 17% higher than the Burman family's offer. Gaekwad's offer was ultimately rejected due to regulatory approval issues, clearing the way for the Burman Group to take control.
The scrip rose as much as 9.41% to Rs 244 apiece. It pared gains to trade 3.86% higher at Rs 231.61 apiece, as of 10:13 a.m.
It has fallen 1.23% in the last 12 months. Total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 40.
One analyst tracking the company maintains a 'buy' rating for the stock, according to Bloomberg data. There is no average 12-month consensus price target.
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