The Securities and Exchange Board of India (Sebi) has approved the Burman family's proposed open offer to acquire an additional 26 percent stake in New Delhi-based Religare Enterprises (REL), The Economic Times reported today, citing unidentified sources. Following the Reserve Bank of India’s (RBI) conditional approval earlier this month, this marks the final regulatory clearance needed for the promoter family of Dabur to proceed with the offer.
With all approvals now secured, the Burman family is expected to announce the open offer in the coming days, with a targeted launch in mid-January, said the ET report. The Burman family's open offer for Religare shares could potentially lead to a change in management control of the non-banking financial company (NBFC).
Religare's share price surged nearly 3 percent on Friday, December 20. The stock has climbed approximately 45 percent in the past year, lifting the company’s market capitalisation to over Rs 10,000 crore.
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The Burman family, who currently holds a 25 percent stake in Religare, announced their plan to acquire an additional 26 percent stake for Rs 2,116 crore under Sebi's Substantial Acquisition of Shares and Takeovers (SAST) guidelines in September last year. This move would raise their total stake to well above 50 percent, granting them majority control of the NBFC.
The open offer was triggered when the Burman family’s equity holding in Religare exceeded the 25 percent threshold, necessitating compliance with regulatory norms. Given Religare’s involvement in insurance and financial services, the offer required multiple regulatory clearances.
Earlier this month, the Reserve Bank of India (RBI) approved the proposal, subject to conditions. The RBI required the Burman family to submit a "concrete" consolidation plan with defined timelines and to complete the acquisition within one year. Additionally, the regulator mandated that the current management structure remain unchanged, rejecting the family’s proposal to appoint new directors, including Arjun Lamba, Abhay Agarwal, Ramanathan Gurumurthy, and Suresh Mahalingam.
The Burmans had already secured approvals from the Competition Commission of India (CCI), the Insurance Regulatory and Development Authority of India (IRDAI), and stock exchanges, paving the way for this final Sebi clearance.
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