Shares of Religare Enterprises Ltd skyrocketed 9% on 21 February after the Burman family became the company’s promoters and acquired the majority of the company.
This comes after the Burmans’ open offer of Rs 2,116 crore to buy an additional 26% of Religare Enterprises was met with a mediocre response. Only 0.07% of the 26% portion that was up for grabs was actually tendered, based on the data from the open offer.
Despite the lacklustre open offer, the Burman Group held 25.16% of Religare Enterprises.
The company issued a statement saying, “We are pleased to announce that we have acquired control of Religare Enterprises and been designated as its promoters. We are grateful to our regulators, shareholders and other stakeholders for their trust and confidence.”
The group’s top priorities were stressed, such as establishing stability, enhancing governance, and promoting sustainable growth within the company. “Our vision for REL is anchored in governance, trust, and integrity, guiding us towards a future built on resilience and maximising stakeholder value,” the spokesperson said.
Through four businesses, Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company, the Burmans held a 20.15% stake in Religare Enterprises.
In September 2023, REL shareholders received an open offer from the Burman family, who own Dabur India and other businesses, including Eveready Industries, for Rs 2,116 crore to purchase up to a 26% stake in the company.
In January 2024, four companies also paid Rs 277 crore for a 3.6% share in the company through open market transactions. The shares were bought by three Burman family businesses: Puran Associates, VIC Enterprises, and M B Finmart.
At 1:43 pm, the shares of Religare Enterprises were trading 6.16% higher at Rs 236.75 on NSE.
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