With this transfer, the shareholding of Burman Household stands elevated from 21.18 per cent to 25.18 per cent. All essential choices of REL requiring a particular decision can now doubtlessly be blocked by the Burmans, which have gained a better say within the affairs of REL, say company regulation consultants.
This newest open market share buy comes amid an ongoing tussle with incumbent Chairperson Rashmi Saluja-led REL Board that’s stoutly opposing the Burman Household’s efforts to take management of Religare Enterprises.
“We’re completely satisfied to tell that we’ve got elevated our stake to 25.18 per cent in Religare Enterprises Ltd (REL). We reiterate our dedication in the direction of the acquisition of REL. We now eagerly await the remaining approvals essential to consummate the Open Supply and look ahead to Co-operation by the REL Board,” Mohit Burman, Member, Burman Household stated on Wednesday after the open market buy transactions.
In the meantime, this open market buy by the Burmans doesn’t sign the top of the continuing tussle between the 2 sides. Market regulator SEBI, RBI and IRDAI have to provide their assent for any graduation of open supply for the extra 26 per cent stake, sources stated. It’s because REL Board has raised match and correct points on sure Members of the Burman household as a part of the continuing tussle.
The newest further 4 per cent stake purchase — amounting to about 1.32 crore shares —was achieved on Wednesday by way of open market purchases by 4 Burman household owned entities (MB Finmart, Puran Associates, VIC Enterprises and Milky Funding) for a value of ₹234 per share. This value of ₹234 is barely decrease than the open supply value of ₹ 235 per share.
In September 2023, the Burman household, which owns Dabur, had signalled its intention to accumulate a 5.27 per cent stake in REL for ₹407 crore, taking their shareholding to over 26 per cent, triggering an open supply.
Burman Household’s newest further stake purchase of 4 per cent got here on the heels of Competitors Fee of India (CCI) giving its approval on January 23 for acquisition of a 5.27 per cent stake in Religare Enterprises by entities managed by the Burman Household, in addition to a subsequent open supply to purchase upto one other 26 per cent of the monetary companies agency.
Burman household had initially acquired a 9.9 per cent stake in REL in April 2018 and have been periodically elevating their shareholding since then. In June 2021, the Burman Household stake was raised to 14 per cent after which an extra 7.5 per cent was acquired in August 2023, taking their shareholding to 21.18 per cent.
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