Dabur’s Burman family makes open offer to acquire stake in Religare Enterprises

• The Burman family aims to raise its stake in Religare via the open offer to 26%.
  
• Their current aggregate ownership stake, which amounts to approximately 21%, is distributed across several corporate entities.
  
• The open offer to the public shareholders is offering to buy their shares at ₹235 each.
  

Entities associated with the Burman family, which has a controlling stake in FMCG major Dabur, have announced an open offer, aimed at acquiring a potential stake of up to 26% of the expanded voting share capital of Religare Enterprises Limited (REL).

The objective behind this move is to increase the Burman family's current equity interest in REL, ultimately allowing them to assume control of the company. The open offer will be executed in full compliance with the regulatory framework laid out by the Securities and Exchange Board of India (SEBI’s) Substantial Acquisition of Shares and Takeovers (SAST) Regulations.

Presently, the Burman family, operating through diverse group entities, is the largest individual shareholder in REL. Their aggregate ownership stake, which amounts to approximately 21%, is distributed across several corporate entities such as M.B. Finmart Private Limited, Puran Associates , VIC Enterprises, and Milky Investment & Trading Company.

SEBI rules require an acquirer to make a public offer to acquire all remaining shares in a company if the acquirer acquires 25% or more of the voting rights.

Says Anand C Burman, Chairman Emeritus, Dabur India, “The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services. We are convinced that REL is the right platform and positioned for sustained success.”

The open offer

The open offer to the public shareholders is offering to buy their shares at ₹235.00 each. If everyone agrees to sell, it would total ₹2,116 crores. But, this deal has rules laid out in a public announcement from September 25, 2023, and more details will come in a formal offer letter, as required by government regulations.

Once this offer is done, the acquirers want to take control of REL. They can also put their people on REL's board and make changes in how REL and its companies are run, but they have to follow government rules for this.

JM Financial Limited served as the exclusive financial advisor and will also oversee the management of the open offer. TT&A and Anagram Partners provided legal counsel in this matter.