Burmans’ Rs 2,116-crore open supply for Religare will get tepid response

New Delhi: Burmans’ open supply of Rs 2,116 crore for the acquisition of further 26 per cent stake in Religare Enterprises Ltd (REL) has acquired tepid response. As per the info of open supply, in opposition to 90,042,541 shares (26 per cent), solely 231,025 shares (0.07 per cent) had been tendered. The open supply for the acquisition of as much as 9,00,42,541 absolutely paid-up fairness shares of face worth of Rs 10 every, representing 26 per cent of the expanded voting share capital of REL from the general public shareholders by M B Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Funding & Buying and selling Firm commenced on January 27, 2025. The open supply closed on February 13 and the date of fee of consideration was February 17, the info mentioned. The tender value for open supply was mounted at Rs 235 per share. Following the open supply, the shareholding of 4 entities would rise to 24.02 per cent.

Burmans, by 4 entities — Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Funding & Buying and selling Firm — collectively owned 20.15 per cent stake in REL.

The Burman household — a promoter of Dabur India and different entities equivalent to Eveready Industries — by its entities, in September 2023 introduced a Rs 2,116-crore open supply to REL shareholders to accumulate as much as 26 per cent stake within the firm. Subsequently, 4 entities in January 2024 purchased a 3.6 per cent stake in diversified monetary companies group Religare Enterprises for Rs 277 crore by open market transactions. The three entities — Puran Associates, Vic Enterprises and M B Finmart — of the Burman household acquired the shares of Religare Enterprises.

Puran Associates is owned by Anand Burman and Minnie Burman, whereas V C Burman owns Vic Enterprises. M B Finmart is owned by Mohit Burman.

Quickly after the open supply bid, Burmans complained to capital market regulator Sebi for violation of insider buying and selling guidelines by then chairperson Rashmi Saluja and appointment of board of her alternative.

Nonetheless, it was contested by REL impartial administrators, who raised crimson flags alleging fraud and different breaches by Burman household entities and approached regulators, together with markets regulator Sebi, the RBI, and the Insurance coverage Regulatory and Growth Authority.

Earlier this month, REL Government Chairperson Saluja was ousted as director by the corporate’s shareholders.

She ceased to be non-independent director with impact from February 7, 2025.