SEBI directs Religare Enterprises to seek approvals for Burman open offer; here is how the stock is reacting

Religare Enterprises shares, Religare Enterprises news: Capital market regulator Securities and Exchange Board of India (SEBI) on Wednesday directed Religare Enterprises Ltd (REL) to apply before July 12 to seek necessary statutory approvals from the RBI and the IRDAI for an open offer by the Burman family. Religare Enterprises shares gained as much as 5.3 per cent to Rs 236.72 apiece on NSE after the news, halting a two-day decline. The counter closed at Rs 233.6, up four per cent on NSE. 

"As per SEBI's advisory, the company will apply for the fit and proper status of the acquirers for the open offer to the concerned regulators including the RBI," a Religare Enterprises spokesperson said. 

In September last year, the Burman family had raised their stake in Religare to nearly 25 per cent, triggering the requirement for an open offer that would allow them to buy more shares from public shareholders. Religare then sought to block the deal saying the open offer was "riddled with irregularities and statutory violations and cast serious doubts on the fit and proper status of the acquirers".

Religare Enterprises Ltd - listed on stock exchanges BSE and NSE - is a core investment company (CIC) registered with the RBI as a non-deposit-taking non-banking financial company (NBFC).  

MB Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd and Milky Investment & Trading Company - collectively referred to as the Burman group - are public shareholders of REL.

Prior to September 25, the four entities together held a 21.54 per cent stake in REL. On September 25, they placed orders with stock broker JM  Financial  Services to purchase up to 1,73,15,874 REL shares, representing 5.27 per cent of the target company's equity, which would have taken their shareholding beyond 25 per cent.

With inputs from agencies

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