NEW DELHI: The Delhi High Court on Thursday refused to stay the Annual General Meeting (AGM) of Religare Enterprises Limited (REL), scheduled for February 7, despite a legal challenge by a minority shareholder over the proposed takeover by the Burman family, owners of Dabur.
Justice Manoj Jain, hearing the petition filed by Sapna Govind Rao, found no sufficient grounds to grant interim relief and allowed the AGM to proceed as planned. Rao, who holds 500 shares in REL, had challenged the RBI’s approval for the takeover, alleging a lack of transparency and undervaluation of shares.
Rao’s plea stated that a competing bid from M/s. Danny Gaekwad Developments & Investments, Florida, valued REL shares at Rs 275 per share — 17% premium over Burman family’s offer of Rs 235 per share.
The petitioner argued that this development, disclosed by REL to the NSE and the BSE on January 24, warranted a reassessment of the acquisition process to safeguard minority shareholders’ interests.
Rao argued that proceeding with the Burmans’ offer without considering the higher bid would cause major financial losses to public shareholders. She said the AGM was scheduled before the competing offer was disclosed, depriving shareholders of the opportunity to make an informed decision.
Seeking regulatory intervention, the petitioner urged the court to direct the Securities Exchange Board of India (SEBI) and RBI to assess the competing bid and temporarily halt the Burman family’s acquisition process. She also requested a stay on the AGM to prevent resolutions being passed under “opaque and prejudicial circumstances.”