Religare Takeover: Supreme Court Directs Danny Gaekwad To Deposit Rs600 Crore by 12th February
SN Thyagarajan (Bar  and  Bench) 10 February 2025
The Supreme Court on Friday directed Danny Gaekwad, who has made a competing offer to buy Religare Enterprises Limited (REL), to deposit Rs600 crore by 12 February 2025 to establish his bona fides. 
 
As a consequence of this, the offer made by Burman Family Holdings (Dabur's holding company) has also been kept open till February 12. Further, the Court directed the Securities and Exchange Board of India (SEBI) to consider the applications by Gaekwad for the takeover of REL.
 
A Bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar said, "If the Appellate (Gaekwad) does not deposit the said amount, this order will automatically be set aside."
 
During Friday's hearing, the Court pondered whether the offer by Burman Family made in 2023 would be consistent with the share valuation today.
 
This order comes as a setback to Burman Family Holdings as their open offer was to close today (February 7).
 
The dispute surrounding REL is a complex takeover battle involving the Burman Family (promoters of Dabur India) and US-based investor Danny Gaekwad. The Burman Family initiated the process by acquiring a further stake in REL, triggering a mandatory open offer to public shareholders to acquire up to 26% of the company at Rs235 per share. This move aimed to increase their total stake to a controlling majority, solidifying their hold on the financial services firm. The open offer, a standard practice under SEBI regulations, allows existing shareholders an opportunity to exit their investment at a predetermined price during a substantial acquisition.
 
However, Gaekwad entered the fray with a competing offer, attempting to disrupt the Burman Family's plans. He proposed a counter-offer to acquire a larger 55% stake in REL at a higher price of Rs275 per share, presenting himself as a more lucrative option for shareholders.
 
SEBI, however, returned Gaekwad's offer saying that it was time-barred. Gaekwad has questioned the validity of this rejection in court. While Religare and the Burman Family claim that the deadline to make the open offer was September 2023, Gaekwad has claimed that it is January 2025.
 
Gaekwad has contended that the Reserve Bank of India (RBI) accorded approval only in December 2024.
 
Gaekwad has now made a fresh application which the SEBI is expected to decide at the earliest possible time, SEBI would have to ascertain the correct cut off date. 
 
The order was passed in a plea filed by Sapna Govind Rao challenging the order of a Division Bench of the Delhi High Court Rao's petition said.
 
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