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 % stake in Religare Enterprises Ltd (REL). The regulator said that the supply didn’t adjust to required rules.
In a communication to REL on January 28, SEBI clarified that the “letters submitted by Digvijay Laxmansinh Gaekwad” have 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 electronic 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 % stake in Religare Enterprises at a worth greater than the one provided by the 4 Burman family-controlled entities. Gaekwad, a self-proclaimed globally acknowledged investor, provided Rs 275 per share — 17 % greater than the Burmans’ supply of Rs 235 per share.
The Burman household’s open supply to amass a further 26 % 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 % of REL’s expanded voting share capital. If permitted, the Burman household’s stake in REL will rise to 53.94 %.
The Burman entities concerned within the open supply embrace Finmart Personal Ltd, Puran Associates Personal Ltd, VIC Enterprises Personal Ltd, and Milky Funding & Buying and selling Firm. As of September 30, 2024, these entities collectively owned 25.12 % of REL.
In September 2023, the Burman household — promoters of Dabur India and different corporations like Eveready Industries — by way of its entities, introduced an open supply value Rs 2,116 crore to amass as much as a 26 % stake in REL.
Following the open supply, the Burmans raised a criticism with SEBI relating to insider buying and selling violations by the chairperson and her board appointments.
This was challenged by REL’s unbiased administrators, who flagged issues 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)
