Burman Group acquires control of Religare Enterprises Limited

Religare Enterprises

The Burman Group announced on February 20 it has acquired control of Religare Enterprises Limited (REL) and has been designated as its promoters.

“We are pleased to announce that we have acquired control of Religare Enterprises Limited (REL) and been designated as its promoters. We are grateful to our regulators, shareholders and other stakeholders for their trust and confidence," the group's spokesperson said in a media statement.

The Group said their immediate priority is to instil stability, strengthen governance, and drive sustainable growth at the company.

"Governance, trust, and integrity will remain at the core of our vision as we steer REL towards a future defined by resilience and stakeholder value maximization," the group's spokesperson added.

Burmans' open offer of Rs 2,116 crore for the acquisition of additional 26 percent stake in Religare Enterprises Ltd (REL) has received tepid response.

As per the data of open offer, against 90,042,541 shares (26 per cent), only 231,025 shares (0.07 per cent) were tendered.

The shareholding of the Burman Group post the Open Offer and acquisition is 83,201,819 equity shares representing 25.16 percent of the outstanding paid-up Share Capital of REL, as per the release.

The Burman Group said it will work with REL's leadership and board to reinforce its strategic direction and enhance long-term value creation.

"We have always invested in businesses with strong fundamentals and high growth potential, and we will apply the same disciplined approach to Religare Enterprises with the highest levels of governance. This was the intent with which we launched our open offer for control, and we remain committed to that," the spokesperson added.

Burmans, through four entities -- Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company -- collectively owned 20.15 per cent stake in REL.

The Burman family -- a promoter of Dabur India and other entities such as Eveready Industries -- through its entities, in September 2023 announced a Rs 2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company.

Subsequently, four entities in January 2024 bought a 3.6 per cent stake in diversified financial services group Religare Enterprises for Rs 277 crore through open market transactions.

The three entities -- Puran Associates, Vic Enterprises and M B Finmart -- of the Burman family acquired the shares of Religare Enterprises.

Puran Associates is owned by Anand Burman and Minnie Burman, while V C Burman owns Vic Enterprises. M B Finmart is owned by Mohit Burman.

Soon after the open offer bid, Burmans complained to capital market regulator Sebi for violation of insider trading rules by then chairperson Rashmi Saluja and appointment of board of her choice.

However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority.

Earlier this month, REL Executive Chairperson Saluja was ousted as director by the company's shareholders.

She ceased to be non-independent director with effect from February 7, 2025.