The Securities and Exchange Board of India (Sebi) on January 28 rejected a US-based investor Danny Gaekwad request to pick up a 26 percent stake in Religare Enterprises Ltd (REL), the financial services firm informed in a stock exchange filing.
The investor, Danny Gaekwad Developments & Investments, had proposed to acquire the stakes at a higher price compared to what was offered by the Burman family.
"The letters submitted by Mr. Digvijay Laxmansinh Gaekwad are being returned since the same is not an exemption application in terms of Regulation 11 of SEBI (SAST) Regulations, 2011," the capital market regulator said in a response to the request.
Gaekwad's request for open offer
A day ahead of an open offer, Religare Enterprises Ltd (REL) on January 26 said its US-based investor Danny Gaekwad Developments & Investments has proposed to pick up a 26 percent stake in the financial services firm at a higher price than offered by entities promoted by the Burman family.
In a letter written to the Sebi Chairperson, posted by REL, Danny Gaekwad Developments & Investments has requested the regulator to permit the US-based entity to submit a competing open offer.
However, Burman group in a statement said Gaekwad has not made any competing open offer and the group is going ahead with its own open offer and is "confident" of its successful closure.
"The Request for Permission is entirely lacking in substance, bona fides, and offers no indication of any source of funds or even the capacity to purchase the proposed shares," a Burman Group spokesperson said.
Digvijay Laxmansinh Gaekwad, who claimed to be a globally recognised investor, has offered to pay a 17 percent higher price of Rs 275 per share of REL as against the open offer price bid of Rs 235 per equity.
With agency inputs
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