In relief to Danny Gaekwad, SC extends Burman's open offer for Religare Ent
This story was originally published at 16:20 IST on 7 February 2025
Register to read our real-time news.Informist, Friday, Feb. 7, 2025
Please click here to read all liners published on this story
--SC extends Burman family's open offer for Religare Ent till Wed
--Danny Gaekwad moves SC against HC order in Religare Ent case
--CONTEXT: HC refused stay on Burman family's open offer for Religare Ent
--CONTEXT:Danny Gaekwad to SEBI: Reconsider competing offer for Religare Ent
--SC extends Burman family's open offer for Religare Ent till Wed
--SC: If Danny Gaekwad pays, Burman Religare open offer on till SEBI decides
--Burman Religare open offer on 3 days after SEBI order on Danny Gaekwad
NEW DELHI – In a relief to US investor Danny Gaekwad Developments & Investments, which has made a competing offer to acquire an additional stake in Religare Enterprises Ltd., the Supreme Court said that the Burman family's open offer to acquire another 26% stake in Religare Enterprises, which was to close on Friday, will continue till Wednesday.
If Danny Gaekwad Developments deposits INR 6 billion as stipulated by the Securities and Exchange Board of India's regulations, the Burman family's open offer will remain open three days after the market regulator decides on Danny Gaekwad Developments' application for reconsidering its competing offer and exemptions for the same. If Danny Gaekwad Developments does not deposit INR 6 billion, then the court's order stands vacated automatically, said a bench led by Chief Justice of India Sanjiv Khanna.
On Tuesday, the division bench of the Delhi High Court had refused to stay the Burman family's open offer to acquire an additional 26% stake in Religare Enterprises on a petition by the company's minority shareholder Sapna Govind Rao. The high court had asked the market regulator to decide quickly on Danny Gaekwad's application seeking that the market regulator reconsider its competing offer proposal to acquire more stake in Religare Enterprises. Danny Gaekwad Developments had also sought exemptions from SEBI for its competing offer for Religare Enterprises. Challenging the high court's order, both Danny Gaekwad and Rao had moved the apex court.
"Look at the consequences. Their (Danny Gaekwad) amount is higher. If you (SEBI) are not going to consider Danny's offer, we will do it our way and that will affect your market. Find a way out," the apex court told Solicitor General Tushar Mehta, appearing for the market regulator, on Friday. Danny Gaekwad is offering a better share price than what is being offered, said the top court.
The top court said that the price offered in the open offer by Burmans was based on September 2023 valuations. "Now, obviously, if there is a public offer made and share payment is received, the clock cannot be set back," said the court. Questioning the market regulator's role, the top court said that the regulator should have exercised greater caution, as shareholders are now being asked to accept prices prevailing 18 months ago. "As a regulator you have to be cautious of that...Is that the role of regulator?" remarked the court.
The apex court said that the primary issue was the date on which the public open offer had commenced. Religare Enterprises said that the date would be September 2023, while Danny Gaekwad said that the date was January 2025, when a public announcement was made by Religare.
Minority shareholder Rao had said that Religare Enterprises' proposed takeover by the Burman family was being mishandled and the family's offer undervalued the company's shares. The Burman family's open offer was slated to be considered at the annual general meeting of Religare Enterprises on Friday. The court was hearing the petition by Rao seeking direction to SEBI and the Reserve Bank of India to evaluate the competing offer by Danny Gaekwad Developments.
Rao had also sought a stay on the Burman family's acquisition of Religare Enterprises until a fair assessment was completed. A competing offer from Danny Gaekwad Developments & Investments valued the company's share at INR 275, a premium of 17% to 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.
Last month, SEBI had returned the open offer by Danny Gaekwad Developments, after noting that it did not conform to the regulator's exemption application rules under the takeover code. Gaekwad had said he could not file the competing offer within the mandatory 15 days of Burman's public announcement in September 2023 as the situation was full of legal and regulatory complexities. Under the Substantial Acquisition of Shares and Takeovers Regulations, SEBI can give exemptions to any entity from making an open offer for acquiring shares, or can allow any entity to make a competing offer on certain conditions in order to protect the interests of investors and the securities market if the regulator receives an application in a certain format.
On Friday, shares of Religare Enterprises closed 4.5% higher at INR 252.80 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
