Religare Enterprises: US-based Danny Gaekwad's Competing Open Offer Rejected by SEBI
Moneylife Digital Team 29 January 2025
Market regulator Securities and Exchange Board of India (SEBI) has rejected a competing open offer by the US-based entity Danny Gaekwad Developments & Investments for buying a 26% stake in Religare Enterprises Ltd (REL) as the offer did not meet necessary regulations.
 
In a regulatory filing, REL shared a letter it received from SEBI. The market regulator's response is to a letter from Digvijay Laxhamsinh Gaekwad, Danny Gaekwad Developments & Investments, Florida, on 24 January 2025 seeking permission to submit a competing open offer for buying a majority stake in REL. 
 
In its letter on 28 January 2025, SEBI says, "The letters submitted by Digvijay Laxmansinh Gaekwad are being returned since the same is not an exemption application in terms of Regulation 11 of SEBI Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011."
 
In December 2024, the Reserve Bank of India (RBI) approved the Burman family's open offer for REL. In a regulatory filing, REL says it received a letter dated 9 December 2024 from RBI conveying the central bank's approval for the proposed increase in shareholding by existing shareholders from the Dabur owner family. 
 
In the letter, RBI says, "...we convey our approval for the proposed increase in shareholding of existing shareholders (hereon referred to as 'acquirers' viz. Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, MB Finmart Pvt Ltd and Milky Investment & Trading Company) in terms of para 27 of Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 dated 25 August 2016, as amended from time to time." 
 
In September 2023, the Burman family, through its group entities, made an open offer for REL. The Burman family holds a 21% stake in REL through MB Finmart, Puran Associates, VIC Enterprises and Milky Investment & Trading.
 
The open offer to the public shareholders was at Rs235 per equity share aggregating a total consideration of Rs2,116 crore assuming full acceptance of the open offer, subject to the terms and conditions mentioned in the public announcement dated 25 September 2023 and to be set out in the detailed public statement and the letter of offer that are proposed to be issued in accordance with the SEBI SAST Regulations.
 
The proposed combination envisages the acquisition of 5.27% of the total issued and outstanding equity share capital of Religare through open market purchases and an open offer for up to 26% of the total expanded voting share capital of Religare under the provisions of the SEBI (SAST) Regulations, 2011. (Read: Burman Family's Open Offer for Religare Enterprises Cleared by RBI)
Comments
Tata Steel: Did Expedience Trump Prudence?
Ranganathan V, 31 January 2025
Earlier this month, Tata Steel Ltd informed the stock exchanges of moving a curative petition against the nine-judge constitutional bench decision of the Supreme Court in July 2024 holding that the state governments have power to levy...
Fake Tech Support Call Centre: Gurugram Court Awards Rs55 Lakh to Microsoft as Damages in Trademark Infringement
Ratna Singh (Bar  and  Bench) 28 January 2025
A commercial court in Gurugram recently awarded Microsoft Rs55 lakh in damages after a company, Retnec Solutions Pvt Ltd was found guilty of trademark infringement and running fraudulent call-centre operations using Microsoft's...
Lodha Trademark: Bombay HC Urges Lodha Brothers To Settle Dispute by Mediation
Sahyaja MS (Bar  and  Bench) 28 January 2025
The Bombay High Court on Monday suggested that the Lodha brothers, who are embroiled in a long-standing trademark dispute, consider mediation to resolve the matter.
 
Justice Arif Doctor said that since the issue stems from a family...
Zoho’s Sridhar Vembu Steps Down, Shailesh Davey Is New CEO
Moneylife Digital Team 27 January 2025
Zoho Corporation's founder Sridhar Vembu has decided to step down as cheif executive officer (CEO) to focus on research & development (R&D) activites as chief scientist. 
 
In a post on X, Mr Vembu says, "In view of the various...
Array
Free Helpline
Legal Credit
Feedback