In a fresh development in the ongoing battle for control of Religare Enterprises Limited (REL), U.S.-based entrepreneur Digvijay “Danny” Gaekwad has officially submitted a revised exemption application to the Securities and Exchange Board of India (SEBI). Gaekwad seeks permission under Regulation 11(1) of SEBI’s (SAST) Regulations to proceed with a competing open offer for REL shares at ₹275 per share, offering a 17% premium over the Burman family’s existing offer of ₹235 per share.
The updated application, submitted after SEBI’s earlier rejection on January 28, 2025, includes additional documentation to ensure procedural compliance. Key improvements include affidavits, board resolutions, and detailed supporting documents that address SEBI’s concerns about non-compliance in the original request.
Competing Offer Backed by Financial Guarantees
As part of the revised application, Gaekwad has approached the Reserve Bank of India (RBI) to establish escrow arrangements with a scheduled commercial bank and provide a bank guarantee of ₹540 crore to secure the competing offer. The financial backing further reinforces Gaekwad’s commitment to acquiring a 26% stake in REL.
Burman Family’s Existing Offer
The Burman family, promoters of Dabur India, initiated their open offer on January 27, 2025, aiming to increase their stake in REL by an additional 26%. The Burmans currently hold nearly 25% of the company. However, REL’s independent directors had raised concerns about the Burmans’ offer, calling it undervalued and not in the best interest of public shareholders.
Intensified Takeover Battle
Gaekwad’s revised offer aims to present REL’s shareholders with a better deal by emphasizing value and timing. The Burman family had previously argued that Gaekwad’s initial proposal did not meet the 15-day window specified under SEBI regulations. However, Gaekwad’s new application directly addresses these objections, potentially allowing SEBI to reconsider the exemption request.
The outcome of this competing offer is likely to shape the future of Religare Enterprises, with public shareholders playing a crucial role in determining the eventual winner of the takeover battle.
As the revised application undergoes SEBI’s scrutiny, market participants are keenly watching for further developments in this high-stakes takeover attempt.
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