Sebi rejects Danny Gaekwad’s offer to buy 26% in Religare

The offer was made in a letter addressed to the Chairperson of the market regulator, according to a filing made by Religare to the BSE.
Religare Enterprise Limited
Religare Enterprise Limited
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NEW DELHI: Sebi has rejected the competing open offer for Religare Enterprises by Florida, US-based investor Digivijay ‘Danny’ Gaekwad.

Market regulator Securities and Exchange Board of India (Sebi) responding to the Gaekwad’s letter has said: “The letters submitted by Digvijay Laxmansinh Gaekwad are being returned since the same is not an exemption application in terms of Regulation 11 of SEBI (SAST) Regulations, 2011.” The content of the letter was part of an exchange filing by the New Delhi-headquartered company.

Gaekwad on January 24 had 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 the market regulator, according to a filing made by Religare to the BSE.

Gaekwad, in the letter, had said 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 Religare’s shares calculated with a reference date of September 22, 2023, of Rs 221.

“We believe that the Burmans’ Open Offer price of Rs 235 per equity share grossly undervalues the real worth of Religare and is to the detriment of public shareholders.

At the time the offer was made on September 25, 2023, the offer price was already at a discount of 15% to Religare’s prevailing market price of nearly Rs 271 per share. Even considering the closing price of Religare shares on January 22, 2025, the 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 Religarefrom 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 Religare.

Gaekwad’s request not exemption application: Sebi

The letters submitted by Gaekwad returned since the same is not an exemption application in terms of Regulation 11 of SEBI (SAST) Regulations, 2011, Sebi said. Gaekwad on Jan 24 had made a counter offer in cash at Rs 275 a share as against `235 apiece made by the Burmans

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