A new development has emerged in the ongoing Religare Enterprises’ (REL) takeover saga, with Florida-based businessman Danny Gaekwad expressing interest in making a competing offer in cash for REL at ₹275 per share. This offer contrasts with the ₹235 per share bid made by the Burman Family entities of the Dabur Group in the Open Offer scheduled to begin on Monday.
In a letter addressed to the SEBI Chairperson dated January 24, investor Digvijay Laxhamsingh Gaekwad, representing Danny Gaekwad Developments & Investments Florida, expressed a willingness to acquire 26 percent of REL’s outstanding share capital through an Open Offer. Gaekwad argued that their offer of ₹275 per share provides a fair and reasonable exit opportunity for public shareholders in accordance with SEBI Takeover Regulations.
The letter raised concerns about the Burmans’ Open Offer, stating that it undervalues REL and fails to disclose how they intend to comply with RBI-mandated conditions on the consolidation of NBFCs within Religare and Burman groups. Gaekwad also questioned the accuracy of the Burmans’ claim that RBI approval for the offer was unconditional.
SEBI approved the Burmans’ Open Offer on December 20, 2024, following RBI’s conditional approval on December 9, 2024. The independent directors of Religare Enterprises recently advised public shareholders to carefully evaluate their options, noting that the Burman family’s offer price of ₹235 per share is low.
The competing offer from Danny Gaekwad at ₹275 per share adds a new dimension to the REL takeover saga, offering shareholders an alternative to consider. It remains to be seen how this development will impact the ongoing acquisition process and the choices available to REL shareholders.
