By Aditya Kalra
NEW DELHI (Reuters) – India’s Religare Enterprises mentioned a U.S. businessman has made a proposal to amass a 26% stake in it, the most recent twist within the battle for management of the monetary providers firm which has rejected one other bid as being priced too low.
The Indian billionaire Burman household, which has based and controls client items conglomerate Dabur India, raised its stake in Religare to just about 25% in September 2023, triggering a so-called open provide to purchase extra shares.
By means of the open provide course of, which begins on Jan. 27, the Burmans plan to purchase round 26% extra of Religare to bolster their presence in India’s quickly rising monetary providers sector, however Religare’s unbiased administrators flagged this week the provide worth of 235 rupees per share was too low.
In a inventory change disclosure late on Friday, Religare shared a letter from U.S. entrepreneur Digvijay “Danny” Gaekwad’s agency requesting permission from Indian market regulator SEBI to make an open provide of 275 rupees per share for the Indian firm, a 17% premium to the present provide.
A consultant of the Burman household, Mohit Burman, and the market regulator SEBI didn’t instantly reply to requests for touch upon Saturday. Florida-based Gaekwad didn’t instantly reply to a Reuters’ electronic mail in search of remark outdoors of regular U.S. enterprise hours.
Religare shares closed at 249.40 rupees on Friday, giving it a market worth of 81.83 billion rupees ($949.30 million).
The Burmans, in the event that they win management of Religare, will discover themselves pitted in opposition to different Indian billionaire households within the monetary providers enterprise, together with Mukesh Ambani’s Jio Monetary Companies and family-controlled Bajaj Finance.
However the Burmans’ Religare bid has confronted regulatory and authorized challenges.
Earlier this week, Religare disclosed {that a} minority shareholder had approached the Delhi Excessive Courtroom, and was in search of to cease Burmans’ open provide bid.
Authorized papers present that the shareholder holds 500 shares in Religare, and the court docket on Tuesday issued a discover to Burmans and SEBI and mentioned any subsequent motion – resembling an open provide – “shall be topic to the result” of the lawsuit.
($1 = 86.2000 Indian rupees)
(Reporting by Aditya Kalra and Siddhi Nayak; Enhancing by Muralikumar Anantharaman)
