The Securities and Exchange Board of India (SEBI) rejected the competing open offer by Danny Gaekwad Developments & Investments, based in the United States, for the acquisition of a 26% stake in Religare Enterprises LTD (REP). The regulator said that the offer did not comply with the required regulations.
In a communication in REL on January 28, Sebi said that the “letters submitted by Digvijay Laxmansinh Gaekwad” had returned, because they were not considered as a request for exemption under Regulation 11 of the SEBI Regulation (SAST) , 2011. The rejection referred to the rejected rejection of an email of January 25, 2025, which included a letter from the Gaekwad entity, Danny Gaekwad Developments & Investments, based in Florida.
Danny Gaekwad Developments & Investments had proposed to acquire a 26% participation in Religare Enterprises at a price higher than that offered by the four entities controlled by the Burman family. Gaekwad, an self -proclaimed investor worldwide, offered RS 275 per share – 17% more than the supply of Burmans of 235 Rs per share.
The Open Offer of the Burman family to acquire an additional 26% participation in REN started on January 27 after regulatory approval. The offer covers up to 90,042,541 fully paid shares, which represents 26% of the widening share capital of REL. If it is approved, the participation of the Burman family in Rel will reach 53.94%.
Burman entities involved in the open offer include Finmart Private LTD, Puran Associates Private LTD, Vic Enterprises Private LTD and Milky Investment & Trading Company. As of September 30, 2024, these entities collectively held 25.12% REL.
In September 2023, the Burman family – Promoters of Dabur India and other companies such as Eveready Industries – Through its entities, announced an open offer worth 2,116 breaks of rupes to acquire up to 26% In Rel.
Following the open offer, the Burmans raised a complaint with SEBI concerning the violations of the negotiation of initiates by the President and his appointments to the board of directors.
This was disputed by the independent administrators of REL, who reported concerns about fraud and other alleged violations of Burman’s family entities and reported the case to regulators, in particular SEBI, RBI and the regulations and the insurance development authority.
(With PTI entries)
