The Delhi High Court on Thursday dismissed a request from a Bangkok-based investor to stop the Burman family’s open offer to acquire 26% of shares in Religare Enterprises Ltd from public shareholders. The court noted that since the Securities and Exchange Board of India (Sebi) had rejected Digvijay Danny Gaekwad’s higher counteroffer, there were no competing bids against the current open offer. Earlier this week, Sapna Govind Rao, claiming to own 500 shares in Religare, appealed to the high court, arguing that public investors should have the opportunity to consider Gaekwad’s revised offer of ₹275 per share.
Gaekwad, a US businessman of Indian origin, initially proposed to purchase up to 26% of shares on Friday but later increased his offer to acquire up to 55% for ₹5,000 crore. This offer was made less than 72 hours before shareholders were set to submit their shares on Monday at ₹235 each to four privately owned entities linked to Mohit Burman, chairman of Dabur. Sebi returned Gaekwad’s offer for the time being, citing non-compliance with the regulator’s exemption application rules under the country’s takeover regulations.
The competition for Religare has taken several dramatic turns since the Burman family announced their intention to acquire the company, which controls India’s second-largest private health insurance firm, Care Health Insurance Ltd, along with other broking and non-banking subsidiaries. The Burman family first expressed interest in obtaining a controlling stake in Religare in September 2023 and has been advocating for the removal of Religare chairperson Rashmi Saluja.
Saluja has expressed her concerns regarding the Burman family’s open offer price, resulting in a six-month delay of the company’s annual general meeting. In December, an investor from Madhya Pradesh sought a court’s intervention for a stay order on the shareholder meeting, but the court ultimately dismissed the appeal, and Religare’s annual general meeting is now scheduled for February 7. This situation continues to evolve.
