The Securities and Alternate Board of India (SEBI) has rejected the competing open supply from US-based Danny Gaekwad Developments & Investments for the acquisition of a 26 p.c stake in Religare Enterprises Ltd (REL). The regulator said that the supply didn’t adjust to required laws.
In a communication to REL on January 28, SEBI clarified that the “letters submitted by Digvijay Laxmansinh Gaekwad” had been being returned, as they didn’t qualify as an exemption utility below Regulation 11 of the SEBI (SAST) Laws, 2011. The rejection referenced an e mail from January 25, 2025, which included a letter from Gaekwad’s entity, Danny Gaekwad Developments & Investments, based mostly in Florida.
Danny Gaekwad Developments & Investments had proposed buying a 26 p.c stake in Religare Enterprises at a value greater than the one supplied by the 4 Burman family-controlled entities. Gaekwad, a self-proclaimed globally acknowledged investor, supplied Rs 275 per share — 17 p.c greater than the Burmans’ supply of Rs 235 per share.
The Burman household’s open supply to amass an extra 26 p.c stake in REL commenced on January 27 following regulatory approval. The supply covers as much as 90,042,541 absolutely paid-up fairness shares, representing 26 p.c of REL’s expanded voting share capital. If authorised, the Burman household’s stake in REL will rise to 53.94 p.c.
The Burman entities concerned within the open supply embrace Finmart Non-public Ltd, Puran Associates Non-public Ltd, VIC Enterprises Non-public Ltd, and Milky Funding & Buying and selling Firm. As of September 30, 2024, these entities collectively owned 25.12 p.c of REL.
In September 2023, the Burman household — promoters of Dabur India and different corporations like Eveready Industries — by its entities, introduced an open supply price Rs 2,116 crore to amass as much as a 26 p.c stake in REL.
Following the open supply, the Burmans raised a criticism with SEBI concerning insider buying and selling violations by the chairperson and her board appointments.
This was challenged by REL’s unbiased administrators, who flagged considerations about fraud and different alleged violations by the Burman household entities and reported the matter to regulators together with SEBI, RBI, and the Insurance coverage Regulatory and Improvement Authority.
(With inputs from PTI)
