NEW DELHI: A week after receiving clearance from the Competition Commission of India (CCI), the Burman family has increased its holding in Religare Enterprises Ltd (REL) by 4% to 25.18% even as they continue to face takeover opposition from the current board of the diversified financial company.
The Burmans would now launch the much anticipated open offer to raise its shareholding above 50%. “We are happy to inform that we have increased our stake to 25.18% in Religare Enterprises Limited (REL). We reiterate our commitment towards the acquisition of REL. We now eagerly await the remaining approvals necessary to consummate the Open Offer and look forward to co-operation by the REL Board,” said Mohit Burman, member, Burman family.
Shares of REL went up by 9% intra-day post the transaction. It closed Wednesday session 5% up at Rs 237. Last week anti-trust body Competition Commission of India (CCI) gave its approval for the acquisition of a 5.27% stake in REL by four firms controlled by the Burman family. CCI gave its nod to the Burmans for the follow-up open offer to buy up to another 26% in REL and take its holding to up to 53.94%.
The Burman family, the promoter of Dabur, had in September announced a Rs 2,116 crore open offer to acquire up to 26% additional stake in REL. Since the announcement, the Burman family and senior board members of Religare, led by chairperson Rashmi Saluja, have levelled serious accusations against each other.