The Burman family, promoters of FMCG giant Dabur, has announced an open offer to acquire an additional 26% stake in Religare Enterprises, a financial services company, for Rs 2,116 crore. The offer is priced at Rs 235 per share, a premium of 10% to the market price on September 22, 2023.
The Burman family already owns a 14% stake in Religare Enterprises. If the open offer is successful, the Burman family will become the controlling shareholder of the company.
The open offer is made with the intention to increase the family’s stake and take control of REL. Post offer the family’s stake in the financial services firm is expected to increase from about 21 per cent at present to 51 per cent.
MB Finmart Private Ltd (Acquirer 1), Puran Associates Private Ltd (Acquirer 2), VIC Enterprises Private Ltd (Acquirer 3), and Milky Investment & Trading Company (Acquirer 4) have announced an open offer for acquisition of up to 90,042,541 fully paid-up equity shares of face value of Rs 10 each from the public shareholders of the company representing 26 per cent of the expanded voting share capital of the firm, at a price of Rs 235 per unit, REL said in a regulatory filing.
The Burman family has said that it is interested in Religare Enterprises because of its strong brand name, its diversified business portfolio, and its experienced management team. The family has also said that it plans to invest in Religare Enterprises to help it grow its business and to become a leading financial services company in India.
The open offer for Religare Enterprises is a significant development for the company. It is a sign of the Burman family’s confidence in the company’s future and its potential for growth. It is also a sign of the growing interest of investors in the Indian financial services sector.
The open offer for Religare Enterprises is expected to close on October 18, 2023.