The Burman family of Dabur already the single largest shareholder in shadow bank Religare Enterprises Limited (REL), has further consolidated their position in the company even as the incumbent board of directors, led chairperson Rashmi Saluja, are opposing their efforts to take control. The Burman family today hiked their stake by around 4% in the company taking their cumulative stake in REL to 25.1% from 21.25% said people aware.
The stake hike was done through open market purchases on Tuesday at an average price below Rs 235/share – the open offer price. The decision to move ahead follows the CCI approval for the open that was awaited but came through last week.
The Competition Commission of India on June 23 rd gave its approval for the acquisition of a 5.27% stake in Religare Enterprises by entities controlled by the Burman family, as well as a subsequent open offer to buy up to another 26% of the financial services firm.
The provisions have been approved under the Securities and Exchange Board of India Regulations, 2011, the competition watchdog had said in a statement.
The Burman family spokesperson was not available for comment immendiately. Religare spokesperson was also not available for a comment immediately.
As per Sebi’s takeover code rules, an open offer is launched once a shareholder crosses the 25% threshold or intends to cross that mark. The Burman’s last September made their intention to launch an open offer at Rs 235/share but since then has faced opposition from Saluja who has called them unfit and improper to run a “regulated entity” like Religare.
With Tuesday’s purchase, the open offer stands triggered and no special resolution – including appointment of directors, compensation matters –can be passed without their consent.
