The Securities and Exchange Board of India (SEBI) has returned a request from Mr. Digvijay Laxmansinh Gaekwad, Danny Gaekwad Developments & Investments, Florida, seeking permission to submit a competing open offer for equity shares of Religare Enterprises Limited under Regulation 20 of SEBI (SAST) Regulations, 2011.
The company, in an exchange filing, disclosed that SEBI’s letter dated January 28, 2025, confirmed the return of Gaekwad’s submission, stating that the request did not qualify as an exemption application under Regulation 11 of SEBI (SAST) Regulations, 2011.
Religare Enterprises had forwarded the request to SEBI via email on January 25, 2025, enclosing a letter from Gaekwad dated January 24, 2025. However, SEBI has declined to consider the request, returning the letters without further action.
This development comes amid ongoing corporate restructuring efforts at Religare Enterprises. SEBI’s decision suggests no exemption or special permission will be granted for a competing open offer in this case.
U.S.-based entrepreneur Digvijay “Danny” Gaekwad had proposed a competing open offer to acquire a 26% stake in Religare Enterprises Limited (REL) at Rs 275 per share. This offer represented a 17% premium over the Rs 235 per share bid previously announced by the Burman family, promoters of Dabur India.
Gaekwad, through his firm Danny Gaekwad Developments & Investments, had formally approached the Securities and Exchange Board of India (SEBI) seeking permission to proceed with this open offer. He emphasized that his proposal is driven by a combination of value, opportunity, and timing, aiming to benefit REL’s shareholders by enhancing the company’s value
The Burman family, who increased their stake in REL to nearly 25% in September 2023, initiated an open offer to acquire an additional 26% of the company, with the process commencing on January 27, 2025. However, REL’s independent directors have expressed concerns, stating that the Burmans’ offer undervalues the company and is not in the best interests of public shareholders.
In response to Gaekwad’s proposal, a spokesperson for the Burman family contended that his offer falls outside the 15-day window stipulated by SEBI’s takeover regulations, which began with their public announcement on October 4, 2023. They further asserted that Gaekwad’s request lacks substance and does not demonstrate the capacity to purchase the proposed shares.