The Madhya Pradesh High Court has disposed off a petition against regulators RBI and Sebi regarding the Annual General Meeting and open offer of Religare Enterprises, paving the way for the AGM to be conducted.
After the CNBC-TV18 alert, shares of Religare Enterprises surged to nearly 4% in trade on January 9.
The open offer of Religare Enterprises was delayed over a legal dispute that saw company's leadership, led by chairperson Rashmi Saluja, raise concerns over the price and Burman family's credentials.
The High Court had stayed the annual general meeting (AGM) after a writ petition filed by one of the investors of Religare. "Till further orders, the notice dated 09.12.2024 and the Annual General Body Meeting of Respondent No. 7 (REL), which is scheduled to be held on 31.12.2024, shall remain stayed," the High Court order dated December 18 had said.
The AGM is important in the context of Rashmi Saluja’s tenure, as she is due for re-appointment. As the only non-independent director, her position requires re-appointment at each AGM, making the delay critical, a report by proxy advisory firm InGovern had said in September 2024.
The open offer has been proposed at Rs 235 per share and totals up to Rs 2,116 crore for the additional stake. If the open offer succeeds, the stake of Burman family in Religare Enterprises will cross 50%, thus transferring management control to the promoters of Dabur.
Read More: Why Religare's largest shareholder is in a battle with its Chairperson and Board
Shares of Religare Enterprises are higher by 40% in the last one year.
The Burmans have already secured approvals from the Competition Commission of India (CCI), the Insurance Regulatory and Development Authority of India (IRDAI), stock exchanges, RBI and Sebi for the open offer.
There have been allegations related to violation of insider trading norms, with the Burmans alleging that Executive Chairperson Rashmi Saluja had sold shares while in possession of undisclosed price-sensitive information. The listed entity is also facing investigations, with the Ministry of Corporate Affairs asking the Serious Fraud Investigation Office (SFIO) to probe into the affairs of Religare Enterprises and Religare Finvest.
Read More: Religare's Rashmi Saluja questions ED & SEBI on ‘baseless allegations’
Religare Enterprise is a Rs 9,600 crore diversified financial services company that provides loans to SMEs, affordable housing, insurance and stock broking through its subsidiaries.
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