Florida investor makes competing bid for Religare

The offer was made in a letter addressed to the Chairperson of market regulator Securities and Exchange Board of India (Sebi), as per a filing made by Religare to the BSE.
Religare Enterprise Limited
Religare Enterprise Limited
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NEW DELHI: In a fresh twist to the acquisition of diversified fintech firm Religare Enterprise Limited (REL), Florida-based businessman Danny Gaekwad has made a counter offer in cash for the company at Rs 275 a share as against Rs 235 apiece made by the Burman Family of the FMCG major Dabur group.

The offer was made in a letter addressed to the Chairperson of market regulator Securities and Exchange Board of India (Sebi), as per a filing made by Religare to the BSE. Written on behalf of Danny Gaekwad Developments & Investments Florida, the letter stated its offer of Rs 275 per equity share represents a 17% premium to the open offer price offered by the Burmans and a 24% premium to the 60-day volume weighted average price of REL’s shares calculated with a reference date of September 22, 2023, of Rs 221.

“We believe the Burmans’ open offer price of Rs 235 per equity share grossly undervalues the real worth of REL and is to the detriment of public shareholders. At the time the offer was made on September 25, 2023, the offer price was at a discount of 15% to REL’s prevailing market price of nearly Rs 271 per share. Even considering the closing price of REL shares on January 22, 2025, Burmans’ open offer price is at a steep discount of 7%,” the letter stated.

The offer is made days before Burmans’ open offer to acquire an additional 26% stake in REL from the open market is set to commence. Last month, the Reserve Bank approved the open offer of the Burman family. As of September 30, 2024, through its four entities, Burmans collectively owns a 25.12% stake in REL.

Meanwhile, independent directions of REL on Wednesday requested shareholders to evaluate the offer and make an informed decision in their best interest about tendering their shares in the open offer.

Gaekwad’s letter stated that the Burmans’ offer is silent on the nature of the approval granted by the RBI to it on December 9, 2024. The letter says the Burmans have not made any disclosure on the contours of the consolidation plan and potential impact on REL shareholders.

Gaekwad said their offer will be a genuine and transparent competing offer to the public shareholders that not only offers a higher price per equity share but is also not riddled with the uncertainty around the contours and “impact of the RBI-mandated consolidation condition with respect to NBCs in Religare and Burman groups (as we do not have any competing NBFC in our group).”

He requested the SEBI to issue requisite directions to keep the tendering period for the Burmans’ Open Offer as announced in their LOF in abeyance for the time being so that tendering by the public in both the Burmans’ Open Offer and their competing offer (if granted by SEBI) can occur simultaneously.

According to University of Central Florida where Gaekwad is on the board of trustees, Digvijay “Danny” Gaekwad is a first-generation American “renaissance entrepreneur” and community leader based in Ocala, FL.

He is the Founder-CEO of NDS USA, an IT & Cloud Services company, and the Founder of Danny G Management, which owns and operates various restaurants and hotels. He also owns DG Hospitality, a hotel and restaurant management consulting company, and Danny Gaekwad Development & Investments, which oversees his real estate investments.

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