The Burman family of FMCG major- Dabur- announced on Monday an open offer to acquire a 26% additional stake in financial services group- Religare Enterprises Ltd- for Rs 2,116 crore.
The family in an exchange filing said it aims to acquire up to 90,042,541 shares at Rs 235 each. Religare shares fell more than 6% on Monday and were trading at about Rs 255 apiece at 12.45 pm.
Four entities of the Burman Group - M.B. Finmart Private Limited, Puran Associates Private Limited, VIC Enterprises Private Limited, and Milky Investment & Trading Company - currently hold 26.52% of Religare. According to Securities and Exchange Board of India (SEBI) norms, an entity buying a 25% stake in a listed firm will have to mandatorily make an open offer.
If the open offer is successful, the Burman family will hold about 54% of Religare Enterprises.
“The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services," said Anand Burman, chairman emeritus at Dabur India.
"We are convinced that REL is the right platform and positioned for sustained success. With our guidance, REL will continue its journey to being one of India’s distinguished financial services platforms.”
Religare is a Mumbai-based diversified financial services company that offers services in over 400 cities. Its services include loans to SMEs, affordable housing finance, health insurance and retail broking.