Religare Ent minority shareholder moves HC 2-judge bench to stay co's AGM
This story was originally published at 18:58 IST on 3 February 2025
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NEW DELHI – Religare Enterprises Ltd.'s minority shareholder Sapna Govind Rao on Monday moved the division bench of the Delhi High Court against the single judge bench's refusal to stay the company's annual general meeting scheduled for Friday, and also its refusal to halt the Burman family's open offer to acquire an additional 26% stake in the company. The division bench might hear the case on Tuesday.
The petitioner had said that Religare Enterprises' proposed takeover by the Burman family was being mishandled and the family's offer undervalues the company's shares. The Burman family's open offer is slated to be considered at the annual general meeting.
On Jan. 30, declining any interim relief, Justice Manoj Jain had said that the reasons given by Rao were not sufficient. The court was hearing the petition by Rao seeking direction to the Securities and Exchange Board of India and the Reserve Bank of India to evaluate the competing offer for Religare Enterprises takeover by Danny Gaekwad Developments & Investments, Florida.
Rao had also sought a stay on the Burman family's acquisition of Religare Enterprises until a fair assessment was completed. Rao had requested the high court to stay the annual general meeting to prevent any resolutions being passed.
Rao has contested the Reserve Bank of India's conditional approval to the Burman family for the acquisition of Religare Enterprises. Rao asked the court to quash the central bank's approval last month.
A competing offer from Gaekwad Developments & Investments had valued the company's shares at INR 275 per share, which was a 17% premium over the Burman family's offer of INR 235 per share. This necessitated a reconsideration of the acquisition process to protect the interests of minority shareholders, Rao had said.
On Monday, the shares of Religare Enterprises closed 0.1% lower at INR 238.10 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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